Tether elevated its publicity to US Treasuries by greater than $3 billion between quarters whereas posting a steep year-over-year decline in quarterly earnings.
In line with its newest attestation report printed on April 30, Tether’s mixed holdings of US Treasury payments, reverse repurchase agreements, and cash market funds with Treasury publicity reached roughly $120 billion by March 31, up from round $116.7 billion on the finish of 2024.
The majority of those holdings contains $98.5 billion in direct Treasury payments, $15.1 billion in in a single day reverse repurchase agreements, and $6.3 billion in cash market funds, of which $4.9 billion are oblique allocations to Treasuries.
The sharp improve comes as the corporate shifts additional towards low-risk, short-term authorities devices to again its USDT stablecoin reserves.
Tether’s up to date reserve composition reveals that it holds 81.5% of its complete $149.3 billion in money, money equivalents, and short-term deposits, primarily US authorities debt.
Tether CEO Paolo Ardoino acknowledged:
“Q1 2025 showcases Tether’s continued management in stability, energy, and imaginative and prescient. With document US Treasury publicity, rising reserves, sturdy earnings, and elevated adoption of USD₮ worldwide, we stay centered on delivering belief, transparency, and worth to a whole bunch of tens of millions of customers.”
He added that Tether’s mission is to “responsibly and compliantly” increase the digital financial system and strengthen the US greenback’s position on the worldwide stage.
Earnings down from document 2024 ranges
Regardless of the rise in reserve property, Tether’s working earnings fell year-over-year. The group reported $1 billion in operational earnings for the primary quarter, down from $4.52 billion throughout the identical interval in 2024.
Final 12 months’s first-quarter determine included $1 billion in internet working revenue from US Treasuries, with the rest attributed to mark-to-market features on Bitcoin (BTC) and gold holdings.
This 12 months’s decrease revenue comes amid relative stability in Treasury yields and a much less favorable setting for crypto asset appreciation, significantly Bitcoin, which declined in worth from $93,812 to $82,704 per BTC between quarters.
Tether’s gold holdings elevated in worth, reaching $6.7 billion from $5.3 billion, partially offsetting crypto market volatility.
Tether reported complete property of $149.3 billion as of March 31, with liabilities of $143.7 billion, leading to $5.6 billion in extra reserves.
This can be a decline from $7.1 billion in extra reserves as of the final quarter of 2024, doubtless as a result of a $2.3 billion dividend distribution throughout the first quarter.
USDT provide expanded by $7 billion throughout the quarter, reflecting ongoing adoption, significantly in rising markets and on-chain finance functions. The variety of wallets holding USDT elevated by 46 million, a 13% quarterly improve.
Strategic investments and regulatory footprint
Past reserve backing, Tether continues allocating capital to long-term investments via its Tether Investments arm, now totaling greater than $2 billion.
These investments span sectors corresponding to renewable power, synthetic intelligence, and peer-to-peer infrastructure. These property aren’t a part of the corporate’s reserve base.
Final quarter additionally marked Tether’s first quarter working beneath regulatory supervision in El Salvador following its official relocation. It now holds a license as a stablecoin issuer beneath the nation’s digital property framework and reviews on to El Salvador’s Monetary Investigation Unit.
Tether’s increasing Treasury footprint continues to align it with conventional fixed-income markets, at the same time as its quarterly earnings mirror the sector’s macroeconomic slowdown and narrower features within the crypto market.
