TLDR Tech / Crypto
Tether Is Not a Stablecoin Company
Tether generated $10B in profit in 2025 on a 300-person headcount, supported by $141B in total US Treasury exposure that exceeds Germany's sovereign holdings, while $13.3T in USDT settled onchain across an estimated 550 million users. In January, the firm launched USAT, a federally regulated stablecoin issued through Anchorage Digital Bank under OCC oversight, bifurcating its product line: USDT remains the offshore El Salvador entity for emerging markets, and USAT targets US institutional settlement with Cantor Fitzgerald as reserve custodian. Beyond stablecoin yield, Tether's proprietary $20B investment arm has deployed into 120+ companies and took a 70% controlling stake in agricultural conglomerate Adecoagro, while acquiring bodega and kiosk chains across Latin America, Africa, and Asia as physical cash-to-crypto on-ramps. USDC overtook USDT in adjusted transaction volume for the first time since 2019 (64% vs 36%), and S&P Global cut Tether to its lowest stability score, citing higher-risk reserve asset exposure rising from 17% to 24%.
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