Tether kicked off 2025 with an enormous monetary displaying, revealing over $1 billion in revenue for the primary quarter and deepening its footprint in U.S. authorities debt.
The stablecoin issuer reported practically $120 billion in publicity to U.S. Treasurys—most of it in direct holdings, and the remaining tied up in repurchase offers and comparable liquid belongings.
Its flagship token, USDT, now boasts a market cap of $149 billion, rising by $7 billion over the quarter as hundreds of thousands of latest wallets got here on-line.
Whereas Tether’s surplus reserves dropped barely from $7.1 billion to $5.6 billion, the cushion stays substantial. That buffer continues to gas the corporate’s broader ambitions, with greater than $2 billion funneled into sectors like AI, vitality, and decentralized knowledge companies.
USDT, alongside Circle’s USDC, dominates the dollar-backed stablecoin panorama, controlling a mixed 87% of the market. However as their affect grows, so do considerations overseas.
EU policymakers and monetary regulators just like the Financial institution of Italy are warning that world markets may face ripple results if these digital {dollars}—or the belongings backing them—had been to destabilize. With projections pointing towards a $2 trillion stablecoin market by 2028, the stakes are rising quick.
