EddieJayonCrypto
1 May 25
Tether increased its US Treasury holdings by over $3 billion to approximately $120 billion by March 31, 2025, focusing on low-risk, short-term government instruments to back its USDT stablecoin reserves. Despite this, Tether’s first-quarter operating profits dropped to $1 billion from $4.52 billion ...
Tether increased its US Treasury holdings by over $3 billion to approximately $120 billion as of March 31, 2025, signaling a strategic shift toward low-risk, short-term government instruments to support its USDT stablecoin reserves.Despite this move, Tether's first-quarter operating profits declined sharply to $1 billion from $4.52 billion year-over-year, impacted by stable Treasury yields and a drop in Bitcoin prices from $93,812 to $82,704.The company's total assets stood at $149.3 billion, with liabilities of $143.7 billion, leaving $5.6 billion in excess reserves, down from $7.1 billion last quarter due in part to a $2.3 billion dividend payout.USDT supply grew by $7 billion during the quarter, accompanied by a 13% increase in wallet holders, adding 46 million new USDT wallets. Tether also boosted its long-term investments beyond reserves to over $2 billion, focusing on sectors like renewable energy, AI, and peer-to-peer infrastructure.Notably, this quarter marked Tether's first under regulatory oversight in El Salvador, where it operates as a licensed stablecoin issuer and reports to the Financial Investigation Unit.Tether's rising US Treasury exposure aligns the firm more closely with traditional fixed-income markets, even as profitability contracts amid macroeconomic headwinds and subdued crypto market performance. The company remains focused on delivering stability, transparency, and growth to its expansive user base worldwide.