Karla Barker 
Tether’s financial performance shows mixed results
Tether, the company behind the world’s largest stablecoin USDt, reported some interesting financial numbers for 2025. Their profits actually went down by about 23% compared to the previous year, which might surprise some people given how much the crypto market has been growing. They made over $10 billion in net profits, which is still a massive amount, but it’s down from the $13 billion they reported in 2024.
What’s really striking though is their US Treasury holdings. They’ve got more than $122 billion in direct US Treasury holdings now, which they say is the highest level ever. I think this shows they’re being pretty conservative with their reserves, maybe more than people expected. They’re calling it an “ongoing shift toward highly liquid, low-risk assets,” which makes sense when you’re responsible for backing a stablecoin that’s used by millions of people.
Growing demand for USDt continues
Despite the profit dip, Tether issued $50 billion in new USDt over the 12-month period. Their CEO Paolo Ardoino says demand for the stablecoin keeps growing as global demand for US dollars moves outside traditional banking systems. He’s got a point there – in places where financial systems are slow or fragmented, stablecoins like USDt can be really useful.
Ardoino even made a bold claim that USDt has “become the most widely adopted monetary social network in the history of humanity.” That’s quite a statement, but when you look at the numbers, it’s hard to argue. USDt is now the third-largest cryptocurrency after Bitcoin and Ethereum, with a market cap of over $185 billion according to CoinMarketCap.
Gold reserves and market confidence
People in the crypto space pay close attention to Tether’s financials because USDt makes up such a big part of the ecosystem. The company’s profits and reserves give us some insight into stablecoin market confidence, which matters for traders and exchanges that use USDt for liquidity and collateral.
Tether also issues a gold-backed stablecoin called XAUt, and they’ve been accumulating gold for their reserves. They reported $12 billion in gold exposure as of September 2025. They hold about 520,089 troy ounces of gold specifically for XAUT – that’s roughly 16.2 metric tons – separately from a broader reserve of 130 metric tons.
A Tether spokesperson recently explained that the gold backing every XAUT token is held separately, making it eligible for physical delivery redemption. That’s interesting because it shows they’re trying to create different products for different needs in the market.
It’s worth noting that while profits are down, the company seems to be focusing on safety and stability with their massive Treasury holdings. Maybe they’re preparing for something, or perhaps they’re just being extra cautious given the regulatory environment. Either way, it’s a significant shift in how they’re managing their reserves.