Tether, the leading issuer of stablecoin, released its first-quarter 2025 financial results, reporting a significant profit of over $1 billion and disclosing nearly $120 billion in U.S. Treasury-backed assets. Tether holds $98.5 billion in direct Treasury bills as of March 31, alongside another $23 billion tied up in cash-like instruments such as repo agreements. The company’s financial report highlights its ongoing strategy of investing in highly liquid and low-risk assets to ensure the stability of its flagship token, USDT. 5.6 billion dollars in reserves currently exceed the required amount for backing USDT, a decrease from the previous year’s surplus of $7.1 billion. USDT’s supply has also risen by $7 billion during this quarter, reaching $149 billion in circulation. The number of wallets holding USDT increased by 46 million. Tether continues to utilize some of its capital surplus for venture-style investments, totaling over $2 billion across sectors like renewable energy, AI, encrypted communication, and digital infrastructure. USDT remains the dominant dollar-backed stablecoin alongside Circle’s USDC, representing 87% of the market share which is expected to balloon to $2 trillion by 2028, according to U.S. Treasury forecasts. However, regulatory concerns are growing in Europe, as the Bank of Italy warned about the risks posed by heavy reliance on dollar-linked tokens if market disruptions occur, particularly given the role of U.S. government bonds in backing these assets. Meanwhile, Tether is planning to launch a new product for the US market by the end of 2025. CEO Paolo Ardoino stated that the launch timeline depends on progress in U.S. legislation regarding stablecoins.