Tether Achieves Unprecedented Profit Amidst US Debt Expansion
Tether's Financial Milestone in 2025
Tether, a key player in the digital asset market, reported a remarkable net profit of $10 billion for 2025.
This achievement underscores Tether's aggressive expansion, positioning it as one of the largest private holders of US government debt.
$50 Billion USDT Expansion Drives Profits
The profit stems from Tether's core stablecoin operations, aligned with a $50 billion liquidity boost into the crypto market.
According to Paolo Ardoino, Tether's CEO, the $50 billion USDT expansion reflects a shift in global dollar demand beyond traditional banking, particularly in regions with slow or inaccessible financial systems.
The issuance increased USDT circulation to over $186 billion, marking the second-largest annual growth in Tether's history.
US Debt Holdings and Financial Strategy
Tether's balance sheet now rivals major nations, with reserve assets reaching $193 billion, bolstered by $141 billion in US Treasury exposure.
This places Tether among the top global creditors to the US, drawing both admiration and scrutiny.
Despite lacking a Big Four audit, Tether maintains over $6.3 billion in excess reserves, though critics question its liquidity in gold and Bitcoin holdings.
Regulatory Challenges Facing Tether
Tether faces regulatory hurdles, operating without a MiCA license in Europe, and facing restrictions from the US GENIUS Act.
To navigate these challenges, Tether launched USAT, an onshore asset compliant with US regulations, marking a strategic shift in its operations.
Despite regulatory pressures, Tether's USDT holds a 60.5% market share, maintaining its leadership in liquidity.