Tether, the leading stablecoin issuer, reported its financial performance for the first quarter of 2025, revealing an operating profit of nearly $1 billion. The company's assets include approximately $98.5 billion in US Treasury bills and over $23 billion in additional cash-equivalent assets. Despite holding $5.6 billion in excess reserves—a decrease from $7.1 billion in the previous quarter—Tether maintains a strong market position, with a current market capitalization of $149 billion for USDT. The circulating supply of USDT increased by about $7 billion during the quarter, alongside a rise in user wallets by 46 million. Tether is leveraging its excess capital to fund strategic investments, with over $2 billion allocated to various sectors including renewable energy and artificial intelligence. The broader stablecoin market remains dominated by USDT and USDC, which together account for 87% of market share. Recent discussions among European Union officials highlight potential risks linked to dollar-pegged stablecoins, pointing out possible disruptions in the market and their impact on the global financial system.

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