What happened?
Tether published its Q3 2025 attestation showing year-to-date profit above $10 billion, reserves of $181.22 billion versus $174.45 billion in liabilities, and about $6.8 billion in excess reserves as of Sept 30. USDT supply rose by over $17 billion in Q3 to above $174 billion and later topped $183 billion in October, while the reserve mix includes roughly $135 billion in U.S. Treasuries, $12.9 billion in gold, and $9.9 billion in Bitcoin. The company also said it used proprietary capital to settle the Celsius litigation, launched a share buyback, and applied for an investment fund license in El Salvador, with proprietary investments excluded from assets backing USDT.
Who does this affect?
This matters first to USDT holders, traders, exchanges, and DeFi platforms that rely on USDT for liquidity and settlements. It also affects institutional counterparties, market makers, and regulators because of Tether’s large Treasury exposure and growing systemic footprint. Finally, users in emerging markets and the company’s 500M+ global user base could see impacts on payments, remittances, and access to dollar liquidity.
Why does this matter?
The attestation strengthens confidence in USDT’s backing and liquidity, which can help keep the peg stable and support crypto market functioning in the near term. At the same time, heavy exposure to U.S. Treasuries and rapid supply growth mean that macro shocks (like big rate moves or Treasury market stress) could quickly ripple through exchanges and DeFi platforms that depend on USDT. Corporate actions like buybacks, use of proprietary capital, and new licensing signal more centralized control and potential changes to redemption mechanics, which could shift flows between stablecoins and influence market volatility.