Tether – the largest stablecoin issuer in the world – has just reported Q1/2025 profits exceeding 1 billion USD. However, this figure shows a sharp decline compared to the 4.52 billion USD profit in Q1/2024, marking a significant setback amidst a highly volatile market.



Profit decline due to Bitcoin 'losing steam'


According to the report, the main reason for the profit decline comes from lower profitability from Bitcoin assets – reserves that account for about 5% of Tether's total assets (equivalent to 7.7 billion USD).



  • Q1/2024: Bitcoin increased by more than 64%, helping #Tether to achieve significant profits (even though not realized).


  • Q1/2025: Bitcoin slightly decreased by 12%, significantly pulling down the company's profits.




However, since the end of Q1/2025, Bitcoin has recovered and is currently trading around 97,000 USD, an increase of about 4% from the beginning of the year.



U.S. Treasury reserves – A source of stable profit


Tether stated that most of this quarter's profits come from U.S. Treasury bond yields, where they hold up to 66% of total reserves. The total amount of assets directly and indirectly exposed to U.S. bonds by Tether has now reached nearly 120 billion USD – a colossal figure even for traditional financial institutions.



Tether still dominates the stablecoin market



  • Tether's #USDT – USD-pegged stablecoin – currently has a circulating value of over 148 billion USD, dominating the global stablecoin market.



  • Stablecoin allows crypto users to quickly switch between assets without needing to exit to fiat currency, and Tether's role is extremely important in the DeFi ecosystem.





Facing new regulations in the United States


In the context of the U.S. Congress considering legislation on stablecoins, Tether may not register USDT under the new law if passed. Instead, CEO Paolo Ardoino revealed that Tether may issue a separate stablecoin for the U.S. market to comply with regulations.


Additionally, Tether is also in discussions with auditing firms from the 'Big Four' group to conduct the first comprehensive audit of its reserves – a move that many investors have long awaited.



Contact with crypto users:


Tether remains the backbone liquidity provider of the crypto market. The decline in profits indicates the dependence of stablecoin companies on the price volatility of digital assets like Bitcoin, while also reflecting the necessity of diversifying revenue sources and financial transparency.


For Binance users, Tether maintaining billion-dollar profits during difficult times is a positive signal regarding the stability of USDT, but also a reminder of the risks when the market is highly volatile. #anhbacong



Risk warning: Investing in digital assets always carries high risks. Values can fluctuate significantly and depend on various macroeconomic factors. This article is not investment advice. Please consider carefully and do your own research before participating in the market.