Tether Breaks Records: $10B Profit And $186B USDT Now In Circulation

[Ben Graham]

Tether closed out the year with numbers that turned a few heads in finance circles. Reports say the firm posted net profits above $10 billion for 2025 while the stablecoin USDT grew to roughly $186 billion in circulation — a new high for the token and a sign of how central it has become to crypto markets.

Strong Balance Sheet And Big Reserves

Reports note that Tether’s balance sheet shows solid backing after dividends and payouts. The issuer reportedly ended the year with several billion in excess reserves and total assets that comfortably outmatched liabilities. That cushion has calmed investors who worry about backing for so much stablecoin.

Tether’s cash and short-term holdings are heavy on US Treasury exposure. Based on reports, a large slice of its reserves sits in Treasuries and similar instruments that generate steady interest income. That income helped drive the large profit number, even as the company moved into other assets.

The numbers came from Tether’s most recent annual attestation, prepared by independent accountants at BDO, highlighting the company’s status as one of the top earners in the digital asset sector.

Gold Buys And A Shift In Mix

Reports say Tether has been increasing its holdings of physical gold alongside Treasuries. Recent filings and public comments show roughly 27 tons of gold purchased in the final quarter of the year, and the firm has said it may aim for between 10% and 15% of its portfolio in gold over time. That move is meant to diversify reserves and trim exposure to any single market.

Stock And Market Effects

The profit and the increase in the USDT supply have spillover effects. Market makers and exchanges usually use Tether as the primary dollar substitute in the crypto market, and the increased USDT supply improves trading and payment liquidity.

On the other hand, some rating agencies and analyst firms have pointed out some concerns. There are potential issues with transparency and risk if markets turn against them due to increased allocations to non-Treasury assets.

What This Means For Users And Regulators

For users, the first thing to note is that the increased supply of USDT in the market typically means improved on-ramps for trading and moving value between platforms.

For regulators and big lenders, the numbers underline why stablecoins attract scrutiny. Reports note that watchdogs want clearer, repeatable disclosures to match the scale of these holdings.

Tether’s recent performance frames a larger story about how crypto handles dollar-like liquidity in practice.

The company says its reserves and reporting meet its own standards, while independent commentators push for still greater clarity.

Either way, USDT’s role has grown, and the conversation about risk, disclosure, and where those backing assets sit is only getting louder.

Featured image from Unsplash, chart from TradingView