TL;DR
- Tether earned over $10 billion in net profit in 2025, alongside its second-largest annual USDT issuance.
- Its reserves are concentrated in U.S. Treasury bonds ($122B) and backed by physical gold holdings.
- The company holds $6.3 billion in excess reserves, providing an additional security cushion.
Tether, the world’s largest stablecoin issuer, generated more than $10 billion in net profits during 2025, according to its most recent annual attestation conducted by independent accounting firm BDO. The company also recorded its second-largest annual issuance in its history, adding more than $50 billion of USDT to circulation during the year.
“Through disciplined reserve management and deployments in U.S. Treasury bonds, digital assets and proprietary investment entities, Tether sustained performance while driving growth of its digital dollar ecosystem,” the firm stated on Friday.
The profit figure contrasts with the more than $13 billion reported in 2024. Currently, more than $186 billion USDT circulates, an all-time high backed by $193 billion in assets. The difference reflects Tether’s $6.3 billion in excess reserves.
Treasury Bonds Concentrate Most of the Reserves
The bulk of the company’s holdings is in $122 billion worth of Treasury bonds, positioning Tether as one of the largest holders of U.S. government debt globally. The company also owns around 140 tons of gold, both as an inflation hedge and reserve asset for its gold-pegged XAUT token.
Over recent years, Tether grew to become one of the most profitable private companies in the world. The firm, led by CEO Paolo Ardoino, invested deeply in the Bitcoin mining sector, peer-to-peer messaging and decentralized artificial intelligence, among other investments.
Tether launched a U.S.-based subsidiary in 2025, which officially rolled out its USAT “Made in America” stablecoin earlier this week. The move reflects the company’s expansion strategy toward regulated markets.
The $6.3 billion in excess reserves exceeds the 1:1 backing requirements for USDT, offering an additional security cushion. The concentration in Treasury bonds provides liquidity and reduces volatility risk compared to more speculative assets.
The issuance of $50 billion in new USDT during 2025 marks the second-largest annual expansion in the stablecoin‘s history, only surpassed by previous issuances during periods of high crypto liquidity demand. The growth indicates continued adoption of USDT as a medium of exchange and store of value within the cryptocurrency market.
