Massive Treasury Exposure

According to its Q1 2025 report, Tether holds around $98.5 billion in direct U.S. Treasury bills and another $23 billion in similar short-term instruments through repos and cash equivalents, bringing its total exposure to nearly $120 billion.

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Its excess reserves dropped from $7.1 billion in Q4 2024 to $5.6 billion, the lowest level since Q2 2024.

USDT Demand on the Rise

USDT supply expanded by $7 billion during the quarter, with a 46 million increase in active wallet addresses. The stablecoin’s market cap now stands at $149 billion.

Tether is using a portion of its reserves for strategic investments, committing over $2 billion to areas such as renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure.

Despite its dominance, concerns are growing in Europe over reliance on dollar-pegged stablecoins. The Bank of Italy warned that any disruption in stablecoin markets or related assets could ripple across the broader financial system.

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