Tether has reported a year-to-date profit of approximately US$ 10 billion, driven largely by income on U.S. Treasuries backing its stablecoin issuance. The figure places it among the most profitable issuers globally and raises fresh questions about reserve management, regulation and systemic risk.
Tether’s disclosure of roughly US$ 10 billion in profit so far in 2025 marks a striking milestone for a company issuing a token pegged to one dollar. The bulk of the earnings stem from interest income on its holdings of U.S. Treasury securities backing the outstanding supply of its stablecoin. With yields elevated during the period, the issuer’s large reserve pile generated significant returns. This combination of hefty reserves and favourable interest-rate environment has allowed Tether to generate profits which rival major banks.
Behind the headline numbers lies a story of growth: the company’s supply of its dollar-backed token has expanded substantially, while its treasury balance has swelled to tens of billions — positioning Tether as a major player not only in crypto but in global finance. The profit generation model is relatively straightforward: issue tokens, invest the backing reserves in liquid, interest-yielding securities, and retain the spread. However, the scale now raises broader implications. One is that Tether’s infrastructure may now be regarded as critical financial plumbing — large-scale issuance, deep reserve holdings, and global usage mean that its performance and risk profile matter far beyond crypto-native markets.
Stablecoin issuer turns massive profits amid treasury yields and token growth
This opens up regulatory and systemic questions. With such high profitability, regulators may ask: How transparent are the reserves? What are the liquidity risks if large redemptions arise? Does the firm face risks analogous to deposit-taking banks? The fact that most profits come from treasury income rather than token issuance margins underscores how stablecoins are increasingly integrated into traditional finance mechanics.
Strategically, Tether appears to be using its profit engine to expand: announcements of investment into mining infrastructure, additional token issuance and broader geographic reach suggest the company is reinvesting heavily.
But the same size means the potential downside — should a redemption wave or regulatory shock occur — is larger. In summary: Tether’s ≈US$10 billion profit is a clear indicator of how much the stablecoin issuer has grown and how central it has become. At the same time, it invites scrutiny, as entities with such scale rarely escape attention from regulators, counterparties and markets.
