Tether reports record U.S. Treasury holdings of $135-141 billion in 2025, surpassing major economies, while profits decrease by 23% annually.
This highlights Tether’s financial powerhouse status, posing implications for stablecoin market dynamics and potential vulnerability to future Federal Reserve rate adjustments.
Tether has now reached record highs in U.S. Treasury holdings, estimated between $135-141 billion. The substantial growth is fueling profits projected at $15 billion for 2025, bolstered by interest earnings from these holdings. As Paolo Ardoino, CEO of Tether, notes, “projects net profits near $15 billion for 2025, tied to sustained high Treasury yields.”
Tether’s shift to U.S. Treasury bills followed 2021’s redemption pressures, transitioning away from Chinese commercial paper. The change helped maintain the USDT peg and boosted confidence in the company’s reserve management.
Tether’s Treasury Holdings Surge Past $135 Billion
Tether’s strategy has facilitated a surplus reserve and a $790 million Bitcoin acquisition. The decision has attracted less input from the community, with Howard Lutnick affirming Tether’s stability without concerns from regulatory bodies. As Howard Lutnick, Chairman of Cantor Fitzgerald, states, “The money is there.”
$790 Million Bitcoin Acquisition Follows Reserve Surplus
With interest tied to Treasury yields, the strategy relies on the Federal Reserve’s decisions. A yield decline could impact profits, affecting the overall financial health of Tether’s project based on cumulative data and historical indicators.
Treasury Dependence Mirrors 2021 Reserve Strategy Shift
The reliance on Treasury holdings echoes previous shifts, in 2021 when skepticism led to challenges in Tether’s reserve claims. The current scale, however, surpasses past strategies in magnitude.
Insights from Kanalcoin highlight the potential for continued profit generation as long as Treasury yields remain stable. Historically, Tether’s ability to adapt reserve strategies has ensured financial resilience in the volatile crypto market.
| Disclaimer: This website provides information only and is not financial advice. Cryptocurrency investments are risky. We do not guarantee accuracy and are not liable for losses. Conduct your own research before investing. |
