Tether, the issuer of USDt, the world’s largest stablecoin, saw its 2025 net profit shrink by about $3 billion, while holdings of U.S. Treasuries reached fresh record highs.
In the report published on Friday and prepared by accounting firm BDO Tether said it reported net profits of more than $10 billion in 2025, down about 23% from the $13 billion reported in 2024.
Meanwhile, Tether said its direct holdings of the U.S. Treasury rose to more than $122 billion in 2025, marking an “all-time high.” The company said this showed a “continued shift towards highly liquid, low-risk assets.”
The company has issued $50 billion in fresh US dollars (USDT) in 12 months, and Tether CEO Paolo Ardoino said demand for the stablecoin has surged as “global demand” for US dollars has moved beyond conventional banking rails.
The USD rose in sluggish and fragmented financial systems
“Especially in regions where financial systems are slow, fragmented or inaccessible,” he said, claiming that the stablecoin “has become the most widely adopted monetary social network in human history.”
Cryptocurrency market participants are closely watching Tether’s finances because its stablecoin is a major part of the ecosystem. USDt is the third largest cryptocurrency after Bitcoin (BTC) and Ether (ETH), with a market capitalization of $185.51 billion, According to to CoinMarketCap.
Tether’s yields and reserves provide some insight into the confidence in the stablecoin market, which is critical for traders and exchanges that employ USDt as a substitute for the dollar to provide liquidity and hedging.
Tether, which also issues the gold-backed stablecoin XAUt (XAUT), has been accumulating gold as part of its reserves for some time, reporting Exposure of $12 billion as of September 2025.
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Business holds 520,089 troy ounces of gold per XAUT – approximately 16.2 metric tons – separate from a broader reserve of 130 metric tons, worth approximately $22 billion at current prices.
“Tether holds approximately 130 metric tons of physical gold, and the gold backing of each XAUT token is held separately, making it eligible for redemption via physical delivery,” a Tether spokesperson recently told Cointelegraph.
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