Tether Posts $1 Billion Q1 Profit Amid $120B in U.S. Treasury Holdings

Tether, the company behind the USDT stablecoin, has released its Q1 2025 financial report, revealing a $1 billion profit during the period. The profit was largely derived from U.S. Treasury returns, as opposed to the previous quarter's $6 billion gain, which was bolstered by Bitcoin and gold price surges.

As of March 31, Tether held nearly $120 billion in U.S. Treasury exposure, including $99 billion in direct holdings. Total assets stood at $149.3 billion, with $143.7 billion in liabilities, resulting in a $5.6 billion excess reserve buffer.

Although USDT issuance slowed to $7 billion in Q1 from $23 billion in Q4 2024, the number of active wallets increased by 13%, reaching 46 million users. Tether emphasized that nearly all liabilities are backed by equivalent reserves, maintaining its full-reserve model.

The company continues to diversify its investments, having allocated over $2 billion toward strategic sectors such as AI, renewable energy, and data infrastructure. Q1 also marked Tether’s first quarter under official regulation in El Salvador, where it has established its new headquarters.