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

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.