Tether’s Record-Breaking Year Shows the Growing Power of Stablecoins
Stablecoins have become one of the most essential parts of the global cryptocurrency ecosystem — but in 2025, the leader of the pack has pulled far ahead. Tether (USDT), the issuer of the world’s largest stablecoin, is having its most profitable year in history. With net profits topping $10 billion in just nine months and a market cap swelling to $174 billion, Tether is proving that stablecoins are no longer a niche corner of the crypto world — they are a full-scale financial force.
This explosive growth comes at a pivotal time as demand for digital dollars accelerates globally, competition intensifies, and stablecoin regulations evolve. Against this backdrop, Tether has launched a new share buyback program, expanded its investment footprint, and positioned itself as one of the largest private holders of U.S. Treasuries.
This detailed breakdown covers everything investors, traders, and industry observers need to know about Tether’s strong financial performance and what it means for the future of stablecoins.
Tether Surpasses $10 Billion in Net Profits for 2025
Tether announced that its profits exceeded $10 billion in the first nine months of 2025, a milestone that underscores the company’s unprecedented growth. Its third-quarter attestation — verified by BDO Italy, one of the world’s top accounting firms — confirmed soaring profitability and a rapidly expanding reserve base.
Key Financial Highlights
- $10B+ net profit in 9 months
- $174B+ market cap for USDT
- $6.8B in excess reserves
- Total liabilities tied to USDT: $174.4B
- One of the strongest reserve cushions in the company’s history
With stablecoin usage accelerating in emerging markets, online commerce, remittances, and trading, Tether’s profitability reflects broader global demand for tokenized dollars.
Tether Becomes the 17th Largest Holder of U.S. Treasuries
CEO Paolo Ardoino highlighted one of the most striking data points from the attestation:
“With its all-time high exposure to U.S. Treasuries — amounting to $135 billion — Tether is now the 17th largest holder of U.S. debt.”
This puts Tether ahead of several countries, sovereign wealth funds, and major global banks in terms of Treasury holdings.
Why Tether Holds So Many Treasuries
- Safety
- Liquidity
- Reliable yield
- Compliance alignment with emerging stablecoin regulations
The heavy reliance on Treasuries underscores Tether’s strategy: maintain reserves that track conservative asset classes while maximizing yield for operational profitability.
A Diverse Reserve Portfolio: Gold and Bitcoin Included
Tether’s reserves also include:
- $12.9 billion in gold
- $9.9 billion in bitcoin (BTC)
This diversified backing strategy sets Tether apart from competitors who maintain more traditional portfolios. The gold and bitcoin holdings serve multiple purposes:
- Hedge against currency risk
- Increase long-term yield potential
- Expand strategic flexibility during market volatility
The gold allocation provides stability, while bitcoin holdings reflect Tether’s long-term bullishness on digital assets.
Tether Launches Share Buyback Program for Institutional Investors
One of the biggest announcements is the introduction of a share buyback program, with early interest from major institutional players.
According to Bloomberg, Tether has engaged firms such as:
- Ark Invest
- SoftBank
The program appears designed to:
- Strengthen shareholder value
- Optimize capital structure
- Provide liquidity to private investors
- Demonstrate financial confidence
- Support future investment initiatives
Tether is reportedly exploring up to $20 billion in funding, making this one of the largest capital-related initiatives in crypto history.
Tether Applies for Investment Fund License in El Salvador
Tether also revealed that it has applied for an investment fund license in El Salvador, where it is headquartered.
This move aligns with the country’s broader crypto-forward approach, following its pioneering adoption of bitcoin as legal tender.
Regulatory licensing would give Tether more flexibility in:
- International asset management
- Local financial services
- Private investment products
- Institutional partnerships
El Salvador continues to position itself as a global hub for crypto companies — and Tether’s expansion reinforces that trajectory.
Tether Settles Litigation With Celsius Using Company Capital — Not Reserves
In a notable clarification, Tether confirmed that it settled all outstanding litigation with the bankrupt lender Celsius in October, using:
- its own corporate funds,
- not the reserves backing USDT
This transparency is significant because Tether has long faced scrutiny about how it manages reserves. By using company capital rather than customer-backed reserves, Tether reaffirmed its commitment to maintaining full backing for USDT.
Stablecoin Demand Is Surging — And Tether Is Leading the Charge
Stablecoins have become indispensable to global crypto infrastructure. From Africa’s mobile payments to Latin America’s dollarization wave to everyday traders on centralized exchanges, stablecoin usage is booming.
Tether remains the dominant issuer, and its supply continues to grow at an aggressive pace.
Growth Highlights
- USDT’s circulating supply reached $174B by the end of September
- Supply expanded by $17B in Q3 2025 alone
- USDT remains the most widely used digital dollar worldwide
This growth reflects rising adoption across:
- Cross-border payments
- Remittances
- FX markets
- Decentralized finance
- Digital commerce
- Hedge against inflation in emerging markets
In many developing countries, USDT has become more accessible than traditional banking services.
Tether Plans to Launch a New U.S.-Focused Stablecoin — USAT
Tether confirmed it is preparing to launch USAT, a new stablecoin aimed at the U.S. market.
USAT will be issued in partnership with Anchorage Digital, a federally regulated crypto bank.
Why USAT Matters
- Designed for U.S.-based financial institutions
- Likely structured to comply with upcoming stablecoin regulations
- Positioned for corporate and institutional adoption
- Focuses on bringing regulated digital dollars into mainstream finance
USAT signals Tether’s ambition to expand deeply into regulated financial environments, not just international markets.
Tether Exploring 2–3 Strategic Investments to Grow Stablecoin Usage
In an interview, CEO Paolo Ardoino revealed that Tether is eyeing two to three new investments aimed at boosting stablecoin distribution.
One example is Tether’s investment in Rumble, a video platform where tokens will be used for tipping creators. This strategy indicates that Tether is looking beyond traditional financial applications and into:
- Creator economies
- Digital consumer payments
- Web3 content platforms
- Tokenized incentive ecosystems
Expanding use cases will help USDT — and future tokens like USAT — remain dominant as competition increases.
Tether’s Record Profits Mark a New Era for Stablecoins
Tether’s performance in 2025 shows that stablecoins are entering a new phase — one defined not only by adoption but by massive profitability, global influence, and institutional engagement. With more than $10 billion in profit, enormous Treasury holdings, diversified reserves, and a strategic expansion plan, Tether is positioning itself as a central player in global digital finance.
The launch of a share buyback program, pursuit of new regulatory licenses, rollout of USAT, and expansion into creator platforms all signal that Tether is thinking far beyond just stablecoins. It’s building an ecosystem designed to integrate digital dollars into everyday life, international commerce, and institutional finance.
As stablecoins continue to reshape how money moves across borders and platforms, Tether’s influence is likely to expand even further — and its latest financial results demonstrate just how powerful this sector has become.