Tether Profits Top $10B in 2025 as USDT Hits $174B Market Cap

Issuer Posts Record Quarterly Gains

Tether, the world’s largest stablecoin issuer, said its profits for 2025 have exceeded $10 billion later than three quarters, reflecting continued demand for its dollar-backed token. Based on previous disclosures showing $5.7 billion in profit through the first half of the year, the figures imply that third-quarter earnings surpassed $4.3 billion.

The company, headquartered in El Salvador, said in its latest attestation on Friday that it issued an additional $17 billion in USDT during the third quarter, lifting the token’s market capitalization to $174 billion. Tether’s attestation was prepared by accounting firm BDO Italy, which verified that the company held $6.8 billion in excess reserves above its liabilities of $174.4 billion linked to USDT.

“Q3 2025 results reflect the continued trust and strength behind Tether, even amid a global challenging macroeconomic environment,” Chief Executive Paolo Ardoino said in the statement. He added that the company’s exposure to U.S. Treasuries had reached an all-time high of $135 billion, making Tether “the 17th largest holder of U.S. debt.”

Investor Takeaway

Reserves Expand Beyond Treasuries

Tether’s attestation showed it held nahead $12.9 billion in gold and $9.9 billion in BTC in addition to its vast Treasury portfolio. The diversification reflects the company’s strategy of maintaining multiple reserve assets while generating income from interest-bearing instruments. The firm’s profits have soared alongside rising U.S. interest rates, which boosted returns on its short-term government securities.

The company also confirmed that it had settled litigation with the bankrupt crypto lender Celsius in October, saying the settlement was financed entirely from its own capital and not from the reserves backing USDT.

Tether began a share purchaseback program this quarter, with potential participation from institutional investors in a private placement. Bloomberg reported earlier this month that Tether has held discussions with firms including Ark Invest and SoftBank about raising up to $20 billion in new funding at a valuation of about $500 billion.

Competition With Circle Intensifies

Tether remains the dominant issuer of dollar-pegged stablecoins, though JPMorgan noted this week that Circle’s USDC is expanding quicker when measured by onchain activity and market capitalization. The rival token has gained traction among regulated platforms, while Tether’s distribution continues to be strongest across emerging markets and high-volume platforms.

Tether said it has surpassed 500 million users globally, underscoring its broad retail footprint despite increasing competition and scrutiny from U.S. and European regulators. Analysts say that while remains unrivaled, Circle’s closer ties to U.S. financial institutions may give it an advantage as more jurisdictions impose licensing requirements on stablecoin issuers.

Investor Takeaway

Expanding in El Salvador and Beyond

The company said it has applied for an investment fund license in El Salvador, where it is incorporated, as part of plans to deepen ties with the country’s pro-crypto policies. Tether has played a visible role in El Salvador’s digital finance agenda, providing liquidity and supporting local initiatives built around USDT transactions.

Tether is also developing a new dollar-backed token called USAT, which will target the U.S. market through a partnership with Anchorage Digital Bank. CEO Ardoino said the firm intends to make two or three strategic investments to expand distribution, similar to its stake in video platform Rumble, where USDT is used for tipping content creators.

The company’s rapid growth highlights the profitability of stablecoin issuance at scale. With rising yields and record Treasury exposure, Tether continues to operate more like a digital shadow bank than a traditional fintech company. Yet as regulatory pressure mounts, its ability to sustain these profits will depend on transparency, capital management, and its capacity to maintain confidence among traders and policymakers alike.