2025-05-02
Most of this
came from investments in U.S. Treasury bills. The company now has nearly $120
billion tied up in U.S. Treasurys, including money in Money Market Funds and
reverse repo deals.
Tether
currently holds $5.6 billion in excess reserves to back its stablecoin, down
from $7.1 billion at the end of 2024. This is the lowest extra reserve level
since mid-2024, when it had $5.3 billion. Still, it shows strong risk
management and liquidity.
USDT’s total
supply grew by about $7 billion in Q1 2025, and 46 million more user wallets
were created. As of May 1, USDT’s market cap stands at $148 billion.
Tether is
using its extra capital to invest in areas like renewable energy, AI,
peer-to-peer communication, and data systems, with over $2 billion already
allocated.
USDT and
another stablecoin, USDC, together make up 87% of the dollar-backed stablecoin
market. The U.S. Treasury expects US dollar stablecoin market to grow to $2
trillion by 2028.
Meanwhile,
EU officials are worried about the global financial system relying too much on
dollar-pegged stablecoins. The Bank of Italy warned that problems in the
stablecoin market could affect the wider financial system.
