Tether Earns $10B in Profit With Record $135B in Treasuries

Tether continues to assert its influence in the modern financial landscape. On October 31, the USDT issuer reported a yearly net profit surpassing $10 billion, supported by an extraordinary $135 billion exposure to U.S. Treasuries.

This level of holdings ranks Tether among the top 20 global holders of U.S. government debt, a position typically reserved for central banks. The Q3 2025 attestation by BDO showed over $17 billion in new USDT issuance, bringing the total supply to about $174 billion.

Tether’s Asset Diversification Strategy

Tether’s approach to its treasury goes beyond simply holding large sums. Along with $135 billion in Treasury assets, the company holds $12.9 billion in gold and $9.9 billion in Bitcoin. Together, these assets make up about 13% of Tether’s total holdings, showing a careful balance between safety and growth.

The company has total reserves of over $181 billion and liabilities of $174.4 billion, mostly from circulating USDT. This leaves a surplus of nearly $6.8 billion, giving Tether a strong financial cushion. Such a buffer is important in a market where trust can change quickly.

Tether’s reserves were recently tested in legal matters. In October, the company settled the Celsius case using its investment funds. The USDT-backed reserves were not affected, keeping the stablecoin safe. This shows Tether can manage risks without harming token holders.

During this time, Tether also started a share buyback program. This step, often taken by well-funded companies, signals long-term confidence. It shows that Tether manages its finances carefully while staying active in the crypto market.

Governance and Growth Initiatives

Beyond reporting profits, Tether is expanding its regulatory presence. The company has applied for an Investment Fund License in El Salvador under the Private Alternative Investment Fund law. This shows its plan to grow regulated activities while managing USDT reserves carefully.

It is important to note the difference between attestations and full audits. Attestations offer transparency, while full audits provide a more thorough view of holdings and internal controls. Tether has managed this balance thoughtfully, instilling market confidence without committing to full disclosure, which can sometimes limit operational flexibility.

Proprietary equity is approaching $30 billion, and Tether plans to keep a multi-billion-dollar reserve buffer. Institutional participation in share buybacks and careful reserve management reflect its goal of strengthening investor trust while preparing for growth.

Market Implications

As the 17th largest holder of U.S. government debt, Tether surpasses South Korea, highlighting its importance within the financial system. Its bond holdings connect it directly to broader economic patterns, making its moves noteworthy for both traditional and crypto markets.

In the third quarter, USDT issuance rose by over $17 billion, demonstrating strong ongoing demand for digital dollars. Experts emphasize that this scale, along with a varied reserve structure, reinforces Tether’s role as a reliable liquidity provider. The stablecoin has emerged as a key bridge between fiat currencies and cryptocurrency, affecting trading, lending, and decentralized finance.

With strong capital management, Tether can face crises while keeping the token fully backed. This sets it apart from smaller issuers and provides a good example of safe stablecoin management.

Why Does It Matter for Tether?

Tether’s financial strength and careful management show why it remains a leading stablecoin issuer. The company has shown it can manage risks and maintain USDT backing even under pressure.

Tether’s strategy of diversification, regulatory engagement, and measured growth reinforces trust in its stablecoin. This approach positions the company as a key player bridging traditional finance and crypto markets.