The Rise of Tether: Stablecoin Issuer Reports Record-Breaking Profits in Q1 2025
The company behind the largest stablecoin by market cap, Tether, has seen substantial gains in the first quarter of 2025. In a recent statement released after the publication of its Q1 2025 attestation, Tether announced that it generated over $1 billion in operating profit from traditional investments between January and March this year.
Financial Success and Investment Strategy
Tether credits its impressive returns to the solid performance of its U.S. Treasury portfolio. Additionally, investments in gold helped to offset the volatility in the crypto markets. The company’s Q1 2025 financial report reveals a significant investment portfolio, including $98.5 billion in U.S. Treasury bills, $6.3 billion in money market funds, and $15 billion in overnight reverse purchase agreements.
According to Tether, the total exposure in U.S. Treasuries has reached an all-time high of nearly $120 billion, including indirect exposures from Money Market Funds and reverse repo agreements.
Growth in Circulating Supply and User Base
During the first quarter, Tether saw an increase in the circulating supply of its dollar-denominated stablecoin USDT by approximately $7 billion. Additionally, the number of user wallets grew by 46 million, highlighting the growing global demand for Tether’s stablecoin.
Regulatory Oversight and Expansion
Q1 2025 marks the first time that Tether is subject to regulatory supervision in El Salvador, where it is registered as a stablecoin issuer under the country’s Digital Assets framework. This regulatory oversight underscores Tether’s commitment to compliance and transparency as it continues to expand its presence in the digital assets market.
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