Tether, the world’s largest stablecoin, has launched its attestation for the primary quarter of 2025, claiming that it has over $120 billion in publicity to United States Treasury securities and over $1 billion in revenue for the quarter.
Nevertheless, it additionally means that Tether retains little or no money round.
Moreover, the attestation exhibits that Tether’s self-described “equity” (property minus liabilities) within the report has fallen by nearly $1.5 billion this quarter, greater than the overall revenue.
This was additionally the primary quarter after Tether relocated to El Salvador.
Reserves
Tether’s reserves are dominated by US Treasury securities, with practically $100 billion in direct publicity and an extra $20 billion in additional oblique publicity within the Cash Market Funds and Reverse Repurchase Agreements it makes use of.
Past these property, Tether nonetheless maintains quite a lot of completely different exposures, together with over $6.5 billion in treasured metals, $7.6 billion in bitcoin (BTC), and $4.4 billion in “other Investments.”
Jarringly, Tether additionally has $8.8 billion in “secured loans.”
Tether had beforehand dedicated in late 2022 to “reduce secured loans in Tether’s reserves to zero.”
Ultimately, Tether declared victory, regardless of nonetheless having secured loans, by classifying them as “excess reserves.” This categorization relied on Tether having extra “excess reserves” than it did secured loans.
Since then, the corporate’s secured loans have continued to develop and now exceed Tether Worldwide’s so-called “equity,” that means that secured loans are as soon as once more a part of Tether’s reserves.
Nevertheless, maybe probably the most hanging element within the reserves is how little money and financial institution deposits Tether must preserve round. The attestation lists solely $64 million in that class, a mere 0.04% of its complete property, suggesting it has different methods to shortly entry liquid money to handle redemptions.
Progress
Tether has continued to develop over the previous yr, rising its complete property from roughly $82 billion to just about $150 billion.
Its liabilities, principally comprised of excellent tokens, have additionally grown from roughly $79 billion to $143 billion.
Tether’s fairness has additionally grown from roughly $2.4 billion to $5.5 billion, however has fallen from its peak of $7 billion.
Investments
Tether’s giant reported earnings have allowed it the funds to quickly diversify its investments throughout the globe and industries.
These investments are extremely diverse, together with information facilities, soccer golf equipment, agricultural conglomerates, satellite tv for pc firms, cost firms, and plenty of extra.
Some of the vital of those is the acquisition of Adecoagro, a Latin American agricultural conglomerate.
Some have speculated that Tether intends to make use of this as a part of its tokenization push, probably utilizing its personal Hadron platform.
Different investments and its partnerships, like its now defunct mining partnership with Swan, have drawn it into litigation.
Moreover, Tether has invested in Rumble, a video-streaming web site that has partnered with Donald Trump Jr.
The corporate has additionally continued working carefully with its largest custodian, Cantor Fitzgerald, even because the agency’s earlier head, Howard Lutnick, has began his function as Donald Trump’s commerce secretary.
Taken as a complete, Tether continues to develop, make investments, and change into an much more vital international monetary agency.
