What Happened?
Tether achieved an astonishing profit of nearly $4.9 billion in the second quarter of 2025, with over $5.4 billion in “excess reserves.” This means the company not only fully supports all circulating USDT but also has substantial capital as a safety buffer, showcasing its extremely solid financial condition. Tether’s holdings of U.S. Treasury bonds have exceeded $127 billion, surpassing South Korea and becoming the 18th largest holder of U.S. debt globally. This not only consolidates USDT’s status as the “digital dollar” but also significantly enhances Tether’s influence within the global financial system.
Surge in USDT Demand, Total Circulation Exceeds $157 Billion
Stablecoin issuer Tether recently released its financial report for the second quarter of 2025, indicating that Tether’s financial status is robust and that the reserves backing its issued stablecoin USDT are supported by tangible assets, further solidifying its reputation and market position as the leading provider of digital dollars globally. The report highlighted that the demand for USDT remained strong in the second quarter of 2025, during which Tether issued over $13.4 billion in additional USDT. Since the beginning of the year, the total issuance of USDT has increased by $20 billion, with the total circulating supply exceeding $157 billion.
The continued growth in demand for stablecoins reflects the widespread adoption of USDT globally. In many regions where traditional banking services are limited or inaccessible, USDT has become a key tool for payments, savings, and inclusive finance, serving users in over 150 countries. As of June 30, 2025, Tether’s total assets were approximately $162.6 billion, with total liabilities at $157.1 billion, the majority of which are related to issued digital tokens. The company’s assets consistently exceed its liabilities, proving its solid solvency.
On the financial front, Tether achieved approximately $4.9 billion in net profit in the second quarter of 2025, a 277% increase compared to the same period last year. This brought the company’s total profit for the first half of 2025 to $5.7 billion, with about $3.1 billion coming from recurring profits from daily operations and another $2.6 billion from the appreciation of gold and Bitcoin. Meanwhile, Tether’s shareholders’ equity capital (i.e., excess reserves) remained stable at $5.47 billion. This means that the total assets held by Tether exceed the liabilities required to back all issued USDT stablecoins by $5.47 billion. This fund serves as a safety buffer against market fluctuations, ensuring the company can operate steadily across different market cycles.
In addition, one of Tether’s most notable achievements this quarter is its influence in the U.S. Treasury bond market. The report indicates that Tether’s total holdings of U.S. Treasury bonds have increased to over $127 billion, including approximately $105.5 billion in direct holdings and $21.3 billion in indirect holdings. This figure makes Tether surpass South Korea, becoming the 18th largest holder of U.S. government debt.
Market Competition and Regulatory Environment
Despite the impressive financial results, Tether has not retained all profits but has reinvested most of its earnings into long-term strategic projects. Over the past six months, the company has invested nearly $4 billion in infrastructure and innovation projects in the United States, as well as investments in projects focused on finance, data, and digital freedom, such as XXI Capital and Rumble Wallet. Notably, these strategic investments are entirely separate from the reserves that support USDT.
As Tether continues to expand, its competitors are also active. The U.S. company Circle (USDC issuer) successfully conducted its initial public offering (IPO) in June 2025; fintech giant PayPal is also offering yields of up to 3.7% on its stablecoin. Meanwhile, the global regulatory environment is becoming increasingly clear. U.S. President Trump signed the first legislation targeting stablecoins, the GENIUS Act, in July, while the European Union is exploring a unified regulatory framework for stablecoins to address the dominance of the dollar.
Tether’s CEO Paolo Ardoino stated, “The second quarter results confirm that market trust in Tether is accelerating. As the regulatory framework gradually takes shape, Tether has become a successful model of innovation in stablecoins, showcasing its transparency, resilience, and significant global impact. USDT is helping billions of people access the stability of the dollar, a mission that has never been more important.”
References: Tether, Cointelegraph, The CoinRise