Stablecoins: Tether Breaks Records in Q1 2025
Tether strikes strong at the start of 2025: with over 1 billion dollars in profits and 5.6 billion dollars in excess reserves, the stablecoin leader confirms its supremacy in the crypto market. A financial performance that strengthens its position against regulators and emerging competitors.
In Brief
- Tether records $1 billion in profits in Q1 2025 and $5.6 billion in excess reserves.
- USDT reaches $149 billion in market capitalization, with $7 billion issued and 46 million new wallets.
- Tether holds nearly $120 billion in U.S. Treasury bonds and equivalents.
- Its dominance worries Europe and pushes Russia to develop an alternative national stablecoin.
Crypto: Tether’s incredible results in Q1 2025
Tether strengthens its dominance in the crypto stablecoin segment with remarkable financial results in the first quarter of 2025. The issuer of USDT shows:
- 1 billion dollars of operating profit;
- 5.6 billion dollars in excess reserves, although slightly down from the $7.1 billion in Q4 2024;
- 149 billion dollars market capitalization for USDT;
- 7 billion dollars new tokens issued during the quarter;
- and 46 million new user wallets.
On the asset side, Tether reveals massive exposure to U.S. Treasury bonds, with:
- 98.5 billion dollars in Treasury bonds held directly,
- 23 billion dollars more through repurchase agreements and other cash equivalents.
Despite the decrease in its excess reserves, the company displays solvency far beyond its obligations, consolidating its position as a leader in a highly monitored crypto ecosystem.
USDT under scrutiny: concerns in Europe, response in Russia
These results show that the dominance of dollar-backed stablecoins intensifies, with 87% of the market held by USDT and USDC. According to U.S. Treasury projections, this capitalization could reach 2,000 billion dollars by 2028. But this growth also raises concerns and represents a major danger for Europe.
Accordingly, European authorities, including the Bank of Italy, warn against the systemic risks of these currencies, which threaten global financial stability. Even Russia is considering reducing its dependence on the USDT stablecoin by developing its own national digital currency . This initiative follows Tether’s blocking of wallets linked to the Russian crypto platform Garantex, freezing more than 2.5 billion rubles (about 30 million dollars).
With record profits and growing influence, Tether remains the undisputed leader in crypto finance, despite the rise of other stablecoins. But its rise raises geopolitical tensions and regulatory alerts… Between technological opportunity and systemic threat, the future of stablecoins promises to be as strategic as it is controversial.
