Tether Nears $120B in U.S. Treasuries, Reports Over $1B in Quarterly Profits

Stablecoin issuer Tether has release its Q1 2025 attestation report, which has revealed interesting financial results that include U.S. Treasury holdings approaching a new high. The report also highlights its quarterly operating profits exceeding a key benchmark. The attestation was done by a top five independent accounting firm called BDO.

Tether approaches $120 billion in US treasuries holdings

According to the report, Tether’s total assets amount to $149.27 billion against liabilities of $143.68 billion. The company is now operating under regulatory supervision in El Salvador where it holds a license as a stablecoin issuer.

Tether’s Q1 2025 attestation has revealed that the stablecoin issuer has reached an ATH of total exposure in U.S. Treasuries approaching $120 billion. This figure includes direct Treasury holdings as well as indirect exposures through money market funds and reverse repo agreements.

The company’s Treasury portfolio was a key driver of its financial performance for the quarter. It has contributed to the over $1 billion in operating profit from traditional investments. Tether noted that performance from its gold holdings helped offset volatility in cryptocurrency markets during the period.

The report revealed that USDT’s circulating supply grew jumped almost $7 billion during Q1 2025. It has reached a total of $143.68 billion in tokens issued. This growth coincided with a 13% increase in user wallets, which added approximately 46 million new wallets in a single quarter. This has brought the total user base to around 415 million globally.

Tether CEO Paolo Ardoino highlighted in a tweet that 37% of the global user base uses USDT for savings purposes. He also added that the stablecoin is seeing an average daily volume of $30 billion.

Paolo Ardoino confirms $5.6 billion in excess reserves

Ardoino shared the company’s strong financial position in a tweet accompanying the Q1 2025 attestation release. He confirmed $5.6 billion in excess reserves on top of the 100% reserves backing all issued tokens. This will help to sustain Tether’s price despite market instability.

The extra reserves act as a buffer against market volatility and possible requests for cash. According to the attestation report, the reserves are kept in highly liquid instruments, and therefore the company can meet requests for cash as soon as they arise.

This is the first quarter that Tether has been regulated in El Salvador. This is where the firm is now authorized as a stablecoin issuer under El Salvador’s Digital Assets regime.In addition to its stablecoin core business, Tether has set aside over $2 billion in long-term investments under Tether Investments, Ardoino says. Peer-to-peer communications, data infrastructure, artificial intelligence, and renewable energy are the main areas of these investments.

Ardoino explained his take on how Tether is growing. He spoke about future objectives for the Wallet Development Kit and progress on Tether AI, calling it “the first unstoppable peer-to-peer AI platform.” In a recent statement, Ardoino also revealed how Trump can aid USDT stablecoin.