Tether, the largest stablecoin issuer, reported a record $4.9 billion profit in Q2 2025, bringing its first-half earnings to $5.7 billion. This includes $3.1 billion from recurring operational income and $2.6 billion from mark-to-market gains on Bitcoin and gold holdings. The company’s U.S. Treasury exposure reached $127 billion, making it one of the largest non-state holders of U.S. debt.
Tether issued $13.4 billion in new USDT tokens, pushing the total supply above $157 billion, with year-to-date issuance exceeding $20 billion. Total assets stand at $162.57 billion against $157.1 billion in liabilities, maintaining a $5.47 billion surplus. Tether also invested $4 billion in U.S.-based ventures, including AI, renewable energy, and a $775 million partnership with Rumble.
CEO Paolo Ardoino highlighted Tether’s growing influence in both crypto and traditional finance, driven by strong reserves and global demand. Tether has diversified its portfolio, investing over $13.7 billion in 2024 profits across more than 120 companies in various sectors, excluding its USDT stablecoin reserves.
Bitdeer: A major Bitcoin mining and high-performance computing firm, with Tether investing $150 million in 2024 and planning further expansion to become a global leader in Bitcoin mining. Synonym: A Bitcoin-centric software developer providing self-custodial wallets and Lightning Network services like Bitkit and Blocktank.
Northern Data Group: Tether invested in this data center operator for high-performance computing, supporting blockchain and AI infrastructure, with a $610 million debt facility in 2023. CityPay.io: A crypto payment solutions provider expanding Tether’s reach in digital transactions.
Sorted Wallet: A payment technology provider enhancing USDT’s utility in financial systems. Quantoz: A payments platform compliant with EU’s MiCA regulations, strengthening Tether’s on-ramps for stablecoin use. Shiga Digital: Provides virtual accounts and OTC services for African businesses, developing an on-chain gateway for USDT purchases without local currency exchange.
Oobit: A payment platform facilitating crypto-to-fiat bridges. Zengo: A decentralized wallet technology provider enhancing USDT accessibility. Adecoagro: Tether acquired a 70% stake in this South American agricultural firm for $600 million in April 2025, following a $100 million investment in 2024. The focus is on sustainable food production and renewable energy for Bitcoin mining, with potential exploration into tokenizing commodities like sugar or corn.
Tether also financed a physical crude oil deal settled in USDT, signaling interest in commodity trading. Blackrock Neurotech: A U.S.-based firm developing brain-computer interfaces for communication and cognitive enhancement, with a $200 million investment in 2024.
Rumble: A $775 million strategic partnership, including $250 million in cash and a tender offer for shares, closed in February 2025 to support the video-sharing platform’s growth. Juventus: Investment in the European football club, reflecting Tether’s cross-industry influence.
Tether Edu: Investments in the Academy of Digital Industries in Georgia and PlanB.Network, focusing on Bitcoin education and breaking educational barriers. Holepunch and Pears.com: Peer-to-peer communication platforms like Keet, a decentralized messaging app, to enhance data sovereignty.
Hadron: Tether’s asset tokenization platform, launched in 2024, enables tokenizing bonds, stocks, real estate, and commodities, compliant with KYC/AML regulations. Shiga Digital: Supports tokenization of assets for cross-border trade in Africa.
Tether Data: Investments in decentralized AI and peer-to-peer technologies, including an electrocorticography plugin for brain-to-text conversion. Crystal Intelligence: A blockchain analytics firm for risk monitoring and fraud detection, aiding Tether’s compliance efforts. These investments, funded by Tether’s operational profits ($137 billion in 2024), aim to build a decentralized digital economy, hedge against regulatory risks, and enhance USDT’s utility across global markets.
Regulatory Actions Limiting Tether’s Reach
GENIUS Act (2025): Mandates 100% reserves in U.S. dollars or Treasuries, monthly audits, and anti-money laundering (AML) compliance. Tether’s current reserve composition (65.7% Treasuries, 12% repo agreements, 25.4% alternative assets like Bitcoin and gold) may require adjustments. Its El Salvador headquarters may not meet the Act’s “equivalent regime” standard, potentially necessitating a U.S. subsidiary with costly operational separation.
In 2021, Tether paid an $18.5 million fine to the New York Attorney General for covering up an $850 million loss and a $41 million CFTC penalty for misleading claims about dollar backing. These actions damaged trust and increased scrutiny. The Wall Street Journal reported Tether is under investigation for possible sanctions and AML violations, which could lead to further restrictions or penalties.
A report highlighted discrepancies in Tether’s reserve claims, fueling skepticism about its transparency and compliance. U.S. regulators warn banks about stablecoin reserve outflows, potentially limiting Tether’s integration with traditional financial institutions.
Markets in Crypto-Assets (MiCA) Regulation: Bars non-compliant stablecoin issuers from operating in the EU. Tether’s USDT is not approved under MiCA, leading some exchanges to delist it. CEO Paolo Ardoino claims MiCA won’t disrupt global dominance, but Tether has adopted a cautious approach, re-entering EU markets only where consumer and issuer protections are rrobust. Tether’s investment in Quantoz, which meets MiCA standards, is a strategic move to maintain EU presence indirectly.
Regulators globally worry about Tether’s $157 billion reserve size (including $127 billion in U.S. Treasuries) impacting traditional banking systems. A potential “run” on Tether could destabilize markets, prompting calls for stricter oversight. Tether’s quarterly attestations by BDO Italia are less rigorous than audits, raising transparency concerns. It has never undergone a full independent audit, despite promises since 2017.
Relocating to El Salvador, where crypto regulations are lax, may help Tether avoid stringent oversight but risks alienating regulators in major markets like the U.S. and EU. The rise of CBDCs, like China’s digital yuan, could limit stablecoin use cases, reducing Tether’s relevance in cross-border payments. Tether has committed to complying with the GENIUS Act to maintain U.S. market presence, potentially boosting institutional confidence.
It collaborates with law enforcement, freezing $1.6 million in USDT linked to terrorist financing in 2025 and partnering with INHOPE to combat online child exploitation. Investments in compliance-focused firms like Crystal Intelligence and regulatory-compliant platforms like Quantoz aim to mitigate risks. Tether’s investments span Bitcoin mining, payments, agriculture, neurotechnology, media, education, and tokenization, positioning it as a tech-finance powerhouse.
However, regulatory actions like the U.S. GENIUS Act, EU’s MiCA, and ongoing investigations limit its reach by demanding transparency, compliance, and reserve adjustments. Tether’s strategic moves, including compliance commitments and diversified investments, aim to navigate these challenges, but its opaque history and reliance on non-dollar assets keep it under pressure.
