Tether’s Treasury Holdings Hit Record Levels as 2025 Profits Slip 23%
January 31 2026 – Cointelegraph
Tether Ltd., the company behind the USD‑t stablecoin, released its audited 2025 financial results on Friday. The figures, prepared by accounting firm BDO, show a mixed picture: while the firm’s net earnings fell to just over $10 billion – a 23 percent drop from the $13 billion reported for 2024 – its direct exposure to U.S. Treasury securities surged to a new high of more than $122 billion.
Key figures
| Metric (2025) | 2024 comparison | Comment |
|---|---|---|
| Net profit | $10 bn (–23 %) | Still double‑digit billions, but down $3 bn YoY |
| U.S. Treasury holdings | $122 bn (record) | Represents the “largest ever” cash‑equivalent reserve |
| Total assets | $?? bn (↑ $49 bn YoY) | Growth driven largely by new USD‑t issuance |
| New USD‑t minted | $50 bn | Reflects expanding demand for dollar‑linked liquidity |
| Gold backing (XAU‑t) | ~130 t (≈ $22 bn) | Includes 520 k troy ounces held separately for redemption |
Figures are based on BDO’s audited report and Tether’s public disclosures.
What the numbers mean
Record Treasury exposure signals a strategic tilt toward ultra‑liquid, low‑risk assets.
Tether’s management highlighted the $122‑billion Treasury position as evidence of “the ongoing shift toward highly liquid, low‑risk assets.” In a market where stablecoin credibility is closely tied to the quality of backing reserves, the move reinforces confidence that USD‑t can meet redemption demands even amid heightened volatility in crypto markets.
Profit decline reflects higher reserve‑building costs.
The 23 % profit contraction stems largely from the massive outflow of cash into U.S. Treasuries and gold. While the company’s overall balance sheet expanded by roughly $49 billion year‑on‑year, the cost of acquiring and maintaining these low‑yielding assets eroded earnings. Nonetheless, a $10‑billion net profit still places Tether among the most lucrative crypto‑related enterprises.
USD‑t issuance continues to outpace expectations.
Over the past twelve months Tether minted $50 billion of new USD‑t, pushing the token’s market capitalization to about $185 billion, according to CoinMarketCap. CEO Paolo Ardoino attributed the surge to “global demand for U.S. dollars moving outside traditional banking rails,” especially in regions where financial infrastructure is slow, fragmented, or inaccessible. He described USD‑t as “the most widely adopted monetary social network in the history of humanity,” underscoring its role as a bridge between fiat and digital finance.
Gold‑backed XAU‑t remains a small but growing niche.
Tether’s gold‑backed stablecoin, XAU‑t, is supported by 520 k troy ounces (≈ 16.2 metric tons) held in segregated vaults, separate from its broader gold reserve of roughly 130 metric tons valued at $22 billion. The company maintains that each XAU‑t token can be redeemed for physical gold, reinforcing the token’s utility for investors seeking a tangible asset anchor.
Industry reaction
Stablecoin users, exchanges, and traders watch Tether’s balance sheet closely because USD‑t serves as a primary source of dollar liquidity across DeFi protocols, centralized exchanges, and payment gateways. The record Treasury holdings are likely to be welcomed by market participants who have previously questioned the adequacy of Tether’s reserves. Conversely, the dip in profitability may prompt analysts to examine how the firm balances capital efficiency with the demand for ever‑larger backing pools.
Takeaways
- Liquidity priority: Tether’s $122 billion Treasury exposure underscores a deliberate focus on ultra‑liquid assets, aiming to safeguard redemption capability.
- Profitability pressure: Even with double‑digit‑billion earnings, the firm’s profit margin shrank due to the cost of building and maintaining a massive low‑yield reserve.
- Robust demand for USD‑t: $50 billion of new stablecoin issuance in 2025 signals sustained and growing user reliance on USD‑t for cross‑border transfers and on‑chain liquidity.
- Gold backing adds depth: XAU‑t’s physical gold reserve provides an additional diversification layer, appealing to investors seeking a tangible hedge.
- Market confidence indicator: Tether’s financial health remains a bellwether for the broader stablecoin ecosystem; the latest figures suggest a trade‑off between profit generation and reserve robustness.
As the cryptocurrency market continues to mature, Tether’s strategic allocation of capital will likely influence how other stablecoin issuers structure their backing assets, balancing the twin imperatives of liquidity, safety, and profitability.
Source: https://cointelegraph.com/news/tether-stablecoin-usdt-profits-us-treasury-holdings-annual-report?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
