Tether posts $1 billion Q1 profit with $5.6 billion reserves

Tether  (CRYPTO:USDT) has disclosed a $1 billion operating profit for the first quarter of 2025, alongside a $5.6 billion surplus in reserves, according to its latest financial report.

The report reveals that Tether holds nearly $120 billion in exposure to United States Treasurys, with $98.5 billion in direct Treasury bills and more than $23 billion in additional holdings through repurchase agreements and similar cash-equivalent instruments.

The disclosed $5.6 billion reserve surplus marks a decline from the $7.1 billion reported in the fourth quarter of 2024.

This level of excess reserves is the lowest since the second quarter of 2024, when Tether reported a $5.3 billion surplus.

Tether stated that the supply of its USDt stablecoin increased by approximately $7 billion in the first quarter of 2025, with user wallets growing by 46 million.

The company continues to allocate its excess capital to several sectors, including renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure.

Tether's USDt currently has a market capitalisation of $149 billion as of May 1.

The stablecoin sector remains largely dominated by tokens pegged to the US dollar.

Together, USDt and Circle’s USDC (CRYPTO:USDC) account for 87% of the dollar-pegged stablecoin market.

According to the US Treasury’s Q1 2025 report, the total market capitalisation of dollar-backed stablecoins could reach $2 trillion by 2028.

Meanwhile, regulators in the European Union have raised concerns over systemic risks linked to stablecoins.

“Repercussions for other parts of the global financial system” could arise from instability in the stablecoin market or disruptions in underlying assets like government bonds, the Bank of Italy noted.

At the time of writing, the Tether price was $1.00.