Holdings of U.S. Treasury bonds approaching $120 billion, with quarterly profits exceeding $1 billion.
The world's largest stablecoin issuer Tether recently announced its financial report for the first quarter of 2025, showing that its holdings of U.S. Treasury bonds have approached $120 billion, with quarterly operational profits exceeding $1 billion.
According to a report verified by the global accounting firm BDO, Tether currently directly holds approximately $98.5 billion in U.S. Treasury bonds and also indirectly holds over $23 billion in related assets through money market funds and reverse repurchase agreements. This makes Tether a significant holder of U.S. Treasury bonds, although its scale is still smaller than that of major countries like Japan, it has demonstrated its important position in the global financial market.
As of March 31, 2025, Tether's total assets were approximately $149.3 billion, with liabilities around $143.7 billion, meaning the company holds $5.6 billion in excess reserves. This figure is a decrease from $7.1 billion in the fourth quarter of 2024 but still demonstrates Tether's robust financial position. Notably, unlike the previous quarter, this quarter's profits primarily came from interest income on U.S. Treasury bonds, rather than unrealized gains from asset value increases like Bitcoin and gold, showcasing a more stable profit model.
$USDT's market share continues to expand, with a significant growth in the number of user wallets
In the first quarter, the circulation of $USDT increased by approximately $7 billion, and the number of active user wallets grew by 46 million, a 13% increase. Currently, the market capitalization of $USDT has reached $149 billion, together with Circle's $USDC, accounting for about 87% of the U.S. dollar stablecoin market share.
According to the U.S. Treasury's first quarter report for 2025, the market value of dollar-backed stablecoins is expected to reach $2 trillion by 2028, demonstrating the immense potential of this market.
Source: U.S. Treasury The U.S. Treasury's first quarter report for 2025 indicates that the market value of dollar-backed stablecoins is expected to reach $2 trillion by 2028.
However, EU officials have recently expressed concerns about the risks of excessive reliance on dollar stablecoins. The Italian Bank pointed out that any disruption in the stablecoin market or its underlying bonds could have a 'ripple effect' on other parts of the global financial system. This is also one reason why Tether continues to strengthen the transparency of its reserves and diversify its investment strategies.
Diversified investment layout, operating under regulation in El Salvador for the first time
Tether continues to invest funds into a diversified portfolio, stating that it has 'allocated over $2 billion for long-term plans in renewable energy, artificial intelligence, peer-to-peer communication, and data infrastructure.' These investments are separate from the funds used to collateralize $USDT tokens, demonstrating that Tether is building a broader business landscape for the future.
Additionally, the first quarter of 2025 was also the first financial period in which Tether operated under 'regulatory oversight' at its new headquarters in El Salvador. This initiative adds a layer of official oversight for the company, helping to enhance its compliance and credibility.
Tether CEO Paolo Ardoino stated: 'The first quarter of 2025 showcased Tether's continued leadership in stability, strength, and vision... We remain focused on providing trust, transparency, and value to hundreds of millions of users.'
With the continuous expansion of the stablecoin market and the gradual clarification of the regulatory environment, Tether's business model and investment strategies will continue to attract close attention from the global financial market.
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'Tether's first quarter profits of $1 billion! Profiting from U.S. Treasury bond interests, building an asset empire that surpasses the dollar' This article was first published in 'Crypto City'
