Tether, the company behind the worldโs largest stablecoin by market capitalization, has released its financials for the first quarter of 2025, disclosing nearly $120 billion in exposure to US Treasurys and over $1 billion in operating profit.
According to Tetherโs Q1 2025 financial report, the companyโs assets include $98.5 billion in direct US Treasury bills, along with over $23 billion in additional exposure through repurchase agreements and other cash-equivalent assets.
According to the announcement, Tether holds $5.6 billion in excess of reserves for its USDt (USDT) stablecoin, down from $7.1 billion in excess from the last quarter of 2024. The stablecoin has a market capitalization of $149 billion as of May 1.
โCirculating supply of USDT grew by approximately $7 billion in Q1, with a 46 million increase in user wallets,โ it said.
The company’s excess capital continues to fund strategic investments, with more than $2 billion allocated in renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure.ย
The stablecoin market is broadly dominated by tokens pegged to the US dollar, with USDT and Circleโs USDC holding a combined 87% share.ย According to the US Treasuryโs Q1 2025 report, the market cap for dollar-backed stablecoins is poised to reach $2 trillion by 2028.
European Union officials have recently raised concerns about the risks of overreliance on dollar-pegged stablecoins. According to the Bank of Italy, disruptions in the stablecoins market or the underlying bonds could have โrepercussions for other parts of the global financial system.โ
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