Tether rakes in over $10 billion net profit in 2025 as excess reserves top $6.3 billion

Stablecoin issuer Tether announced unprecedented financial results for the fiscal year ending December 31, 2025, reporting a staggering net profit exceeding $10.2 billion. This landmark performance solidifies Tether’s position as one of the most profitable entities in the financial technology sector, fueled primarily by the high yield generated from its massive holdings of U.S. Treasury Bills and money market instruments.

The 2025 profits mark a significant year-over-year increase, driven by sustained elevated global interest rates and the continued expansion of the USDT circulating supply. Crucially, this immense profitability has allowed Tether to further fortify its balance sheet, with reported excess reserves—capital held above the 100% backing required for all outstanding stablecoins—reaching a historic peak of $6.35 billion.

These excess reserves serve as a critical liquidity buffer and confidence metric for the company. The $6.35 billion figure represents a major milestone, providing unparalleled security for stablecoin holders and demonstrating robust risk management capabilities far exceeding industry standards. The detailed quarterly attestation, expected in early 2026, is anticipated to confirm the conservative allocation of these assets.

Analysts suggest that Tether’s ability to consistently generate such massive passive income from its conservative investment strategy will likely reinforce USDT’s dominance in the stablecoin market. The company has indicated that future profits will be strategically deployed, focusing on securing its leading position in decentralized finance infrastructure and ensuring the long-term solvency and stability of its flagship product.

Source: Tether rakes in over $10 billion net profit in 2025 as excess reserves top $6.3 billion