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Tether Achieves $1 Billion in Operating Profits in Q1 2025
Tether, the leading stablecoin issuer, has reported over $1 billion (AU$1.5 billion) in operating profits for the first quarter of 2025. This impressive performance is primarily due to its substantial investments in US Treasuries, as highlighted in their recent financial report validated by accounting firm BDO.
Key Financial Highlights
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Treasury Exposure:
- Tether holds a record $120 billion (AU$187.2 billion) in US Treasury securities. This figure includes both direct and indirect investments through money market funds and reverse repos.
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Asset and Liability Overview:
- As of 31 March 2025, the total assets of Tether amounted to $149.3 billion (AU$232.8 billion), while total liabilities stood at $143.7 billion (AU$224.1 billion). This provides Tether with a reserve of $5.6 billion (AU$8.7 billion), which, although decreased from $7 billion (AU$10.9 billion) in the previous quarter, still functions as a buffer against risks.
- Growth in Circulation and User Base:
- Tether’s USD₮ currency saw a growth of approximately $7 billion, alongside an increase in new user wallets by 13%, demonstrating heightened demand for US dollar-backed digital assets.
Source: Tether Financial Figures and Reserves Report for Q1 2025.
First Quarter Under El Salvador Regulatory Framework
This quarter marks Tether’s first operating period under the regulatory supervision of El Salvador, where it is licensed to issue stablecoins. The regulatory framework has allowed the company to maintain trust and enhance operational transparency, contributing to its ongoing success in the digital currency landscape.
Additionally, Tether has diversified its long-term investments into sectors like renewable energy and artificial intelligence, aligning with its commitment to sustainable growth and innovation in the digital economy.
CEO’s Statement
Paolo Ardoino, CEO of Tether, expressed confidence in the company’s direction, stating:
“Q1 2025 showcases Tether’s continued leadership in stability, strength, and vision. With record U.S. Treasury exposure, growing reserves, strong profits, and increased adoption of USD₮ worldwide, we remain focused on delivering trust, transparency, and value to hundreds of millions of users. Our mission is clear: to responsibly and compliantly power the digital economy and strengthen the role of the U.S. dollar on the global stage.”
Conclusion
Tether’s robust performance in Q1 2025 underscores its position as a vital player in the cryptocurrency market, achieving significant profitability while maintaining a strong safety net of reserves. As the company navigates new regulatory frameworks and focuses on diversification, it aims to enhance its impact on the global digital economy and continue driving the adoption of stablecoin solutions.
