As USDT Supply Grows, Tether Funnels Billions Into AI and Energy

Tether kicked off 2025 with a massive financial showing, revealing over $1 billion in profit for the first quarter and deepening its footprint in U.S. government debt.

The stablecoin issuer reported nearly $120 billion in exposure to U.S. Treasurys—most of it in direct holdings, and the rest tied up in repurchase deals and similar liquid assets.

Its flagship token, USDT, now boasts a market cap of $149 billion, growing by $7 billion over the quarter as millions of new wallets came online.

While Tether’s surplus reserves dropped slightly from $7.1 billion to $5.6 billion, the cushion remains substantial. That buffer continues to fuel the company’s broader ambitions, with more than $2 billion funneled into sectors like AI, energy, and decentralized data services.

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USDT, alongside Circle’s USDC, dominates the dollar-backed stablecoin landscape, controlling a combined 87% of the market. But as their influence grows, so do concerns abroad.

EU policymakers and financial regulators like the Bank of Italy are warning that global markets could face ripple effects if these digital dollars—or the assets backing them—were to destabilize. With projections pointing toward a $2 trillion stablecoin market by 2028, the stakes are rising fast.

Alexander Stefanov