Tether, the issuer of the USDT stablecoin, has reported a staggering Tether net profit record of over $10 billion in the first nine months of 2025. This figure completely redefines its financial scale and generates significant implications for custodians, market operators, and regulators in the crypto space. The company attributes this extraordinary result to its effective reserve management and substantial investment income, which inevitably opens a debate about liquidity, asset traceability, and its exposure to sovereign debt.
According to data provided by Tether, these profits are explained by the active investment of its reserves. These total $181.2 billion. Of this amount, approximately $135 billion is reportedly placed in U.S. Treasury bonds. This fact positions Tether as one of the largest private holders of sovereign debt, placing it, according to the cited figures, as the 17th largest holder of Treasuries. Furthermore, the company reports $8.7 billion in gold custodied in Zurich and significant Bitcoin purchases, along with $6.8 billion in excess reserves. Currently, it has approximately $183 billion in USDT in circulation, maintaining a market share of close to 60% in the stablecoin sector.
The key mechanism behind this profitability is seigniorage. That is, the ability to generate yield from the reserves backing a stablecoin. Technically, seigniorage is the profit an issuer obtains by investing the assets that back an issued monetary unit. In this case, returns from Treasuries and other assets have amplified operational profitability to extraordinary levels. Margins of 99% are reported, consolidating its position in the digital economy.
How will Tether’s colossal profit impact the stability and regulation of the global crypto market?
One of the most relevant implications is concentration risk. The high exposure to Treasuries implies considerable sensitivity to interest rates and monetary policy decisions. This could have a direct impact on Tether’s ability to maintain USDT’s peg and liquidity. On the other hand, the size of its balance sheet increases regulatory scrutiny. Attestations on reserves and excess liquidity will be decisive for regulatory compliance and user confidence. Transparency becomes crucial in this scenario.
Furthermore, Tether’s announced profitability and high market share can distort liquidity dynamics in spot and derivatives markets. The entity’s corporate strategy suggests ambitious plans. A capital raise of up to $20 billion is being considered. This targets a potential valuation of $500 billion. This operation could include a share buyback and changes in governance. This would lead to increased supervision by regulators and operational reviews of custody and risk management.
As the next relevant milestone, the firm’s management projects an annual profit of $15 billion. It is also considering a capital round that, if materialized, would broaden regulatory scrutiny. Additionally, it would necessitate operational reviews of custody and risk management in markets where USDT acts as collateral. The future of stablecoin and its role in decentralized finance (DeFi) will largely depend on how it manages these new challenges.
