Tether Posts $10B Profit, Holds $141B in U.S. Treasuries
Tether reported net profit of about $10–11 billion and disclosed roughly $141 billion in U.S. Treasury securities backing USDT, with independent attestation (BDO) showing $6.3 billion in excess reserves. The company has shifted reserves into short-dated, high-quality U.S. Treasuries and increased cash and cash equivalents to bolster liquidity. Tether says interest income from short-term Treasury bills drove much of the profit and that diversified Treasury maturities and large liquid buffers support USDT’s peg and redemption coverage. The move is framed as deliberate de-risking and greater transparency in response to regulatory and market scrutiny. Tether also signaled diversification into areas such as sustainable energy and Bitcoin mining. Implications for traders: stronger perceived reserve backing should improve USDT confidence and liquidity, deepen ties between crypto and traditional finance via large Treasury participation, and raise transparency expectations for other stablecoin issuers.
Bullish
The news is bullish for USDT specifically. Large, clearly disclosed holdings of short-dated U.S. Treasuries and an independent attestation of excess reserves reduce perceived counterparty and liquidity risk for USDT. That should increase trader confidence in using USDT as a funding and settlement currency, improving effective liquidity in crypto markets and lowering premium on redemptions. Short-term effects: reduced USDT-related volatility and tighter spreads, possibly encouraging increased stablecoin flows into spot and derivatives markets. Longer-term effects: deeper integration between crypto and traditional finance as stablecoin reserve holdings in Treasuries grow, and higher transparency standards that may further consolidate trust in major issuers. Risks remain—concentration in Treasuries ties stablecoin reserve performance to interest-rate and Treasury-market dynamics—but overall the announcement lowers tail-risk perceived by traders and is thus net supportive of USDT demand.