Tether Posts $1B Q1 Profit, Holds $5.6B in Excess Reserves

Yigit Taha OZTURK — Fri, 02 May 2025 09:30:38 +0000

Tether, the issuer of the world’s largest stablecoin USDT, has reported over $1 billion in operating profit for Q1 2025, alongside $5.6 billion in excess reserves.

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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EU Regulator Warns Crypto Could Threaten Market Stability!

Yigit Taha OZTURK — Wed, 09 Apr 2025 10:00:41 +0000

The EU markets watchdog ESMA warned that as the crypto industry grows and becomes more interconnected with traditional finance, it could pose significant risks to financial stability. Speaking on April 8, ESMA’s Executive Director Natasha Cazenave told the Economic and Monetary Affairs Committee: “Future sharp drops in crypto prices could have spillover effects on our financial system.”

Cazenave emphasized that crypto currently represents only 1% of global financial assets and is not yet a major threat. However, she pointed to rapidly increasing connections, especially in the more crypto-friendly US.

Concerns include spot crypto ETFs, stablecoin usage, hacks, scams, and high-profile collapses like the $1.4B Bybit exploit and FTX’s 2022 downfall.

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To counter such risks, the EU has already rolled out the MiCA (Markets in Crypto-Assets) regulation. While Cazenave called MiCA a breakthrough, she stressed that “there is no such thing as a safe crypto-asset,” and additional regulations may be needed.

Europe Still Hesitant on Crypto

According to Cazenave, over 95% of European banks remain uninvolved in crypto-related activities. However, retail interest is increasing, with an estimated 10% to 20% of investors in Europe having some crypto exposure—reflecting broader global trends.

These warnings come amid recent double-digit drops in both crypto and stock markets, as macroeconomic uncertainties persist.