Tether Posts $1 Billion Profit Despite 21% Reserve Decrease

In its Q1 2025 financial report, Tether announced a significant $1 billion profit while also reporting a notable 21% decline in USDT reserve surplus, verified by BDO. The report highlights the company’s economic resilience and contribution to the digital economy. This decrease was partly offset by increased Treasury holdings, which now total nearly $120 billion, though this comes alongside a $7 billion surge in USDT supply. Tether leaders emphasize their role in strengthening the digital economy. 87% of the stablecoin market is held by USDT and USDC combined, demonstrating continued market dominance. This profit dip aligns with broader market stabilization after recent volatility. Concerns regarding the stability of the global financial system are arising due to Tether’s growing Treasury holdings. Regulatory scrutiny also continues as European Union officials express concern over Tether’s reliance on dollar-pegged stablecoins. Market projections show a potential $2 trillion stablecoin market by 2028, prompting analysis of Tether’s strategies for maintaining market leadership. Despite lower profits, Tether is pursuing strategic growth in renewable energy investments. This demonstrates continued business activity beyond just profit. **Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing.**