Tether Quietly Evolves Into a Global Shadow Banking Power
- Tether posted over $10 billion in profit in 2025 as USDT supply surged worldwide.
- Treasury holdings climbed above $100 billion, placing Tether among the top holders.
- Gold and bitcoin reserves grew fast, pushing Tether into global financial relevance.
Tether ended 2025 with more than $10 billion in net profit as USDT supply surged and reserves expanded sharply into U.S. Treasuries, gold, and bitcoin. The figures show a stablecoin issuer now operating at a global financial scale. The company reported the results on Friday through a fourth-quarter attestation signed by BDO Italy.
The report showed $6.3 billion in excess reserves above $186.5 billion in liabilities tied to issued tokens. USDT supply expanded by $50 billion during the year and crossed $186 billion in circulation. The growth reinforced USDT’s position as the most widely used digital dollar in crypto markets.
Treasury Exposure Reaches Sovereign Scale
Tether continued increasing exposure to U.S. government debt throughout 2025. Direct holdings of U.S. Treasuries reached $122 billion by year’s end. When including overnight reverse repurchase agreements, total Treasury exposure rose to $141 billion. This scale places Tether among the world’s largest holders of U.S. government debt.
Such exposure gives the firm a growing presence in short-term funding markets. These markets have traditionally relied on banks,s money market funds, and central banks. The reserve strategy differs from most stablecoin issuers. Tether invests a large share of reserves in Treasury bills rather than holding only cash equivalents.
Transparency reports show Treasuries now represent more than 80 percent of USDT backing. The holdings exceed the Treasury exposure of several sovereign states.
Gold and Bitcoin Add Reserve Depth
Beyond government debt, Tether maintained large allocations to gold and bitcoin. The company reported $17.4 billion in gold holdings and $8.4 billion in bitcoin. Gold accumulation accelerated during the year. Tether bought physical gold at a pace of up to two tons per week, according to a Bloomberg interview with CEO Paolo Ardoino.
At that rat,e purchases could exceed $1 billion each month. By late 202,5 total gold holdings reached about 140 metric tons valued near $24 billion. Reuters reported that executives described the gold strategy as similar to central bank reserve management. The shift marked a move toward active asset diversification.
Bitcoin exposure added another layer to reserves. The allocation linked Tether more closely to digital asset markets while maintaining dollar liquidity through USDT.
A Hybrid Financial Intermediary Emerges
Tether also reported a separate investment portfolio valued at $20 billion. The portfolio remains distinct from assets backing issued tokens. “With USDT issuance at record levels, reserves exceeding liabilities by billions of dollars, Treasury exposure at historic highs, and strong risk management, Tether enters 2026 with one of the strongest balance sheets of any global company,” said CEO Paolo Ardoino.
Related: Tether Unveils USA₮, Its First Fully Regulated U.S. Dollar Stablecoin
The report arrived as global demand for stablecoins continued rising. USDT remained the dominant digital dollar across exchanges and payment rails. Earlier this week, Tether launched USAT, a new U.S.-focused stablecoin. The product was developed with Anchorage Digital a federally chartered crypto bank.
The launch marked a move toward regulatory-compliant operations in the United States. At the same time, stablecoin rules remain unsettled across major jurisdictions. Proposed frameworks such as the U.S. GENIUS Act seek to align stablecoins with traditional finance. Still, Tether’s model has expanded faster than regulation.
As USDT functions across payments trading and reserves, one question remains unresolved. Can a private stablecoin issuer hold such scale without bank-level oversight?
