Tether, the USDT issuer, the largest stubcoin in the digital asset market, has released its financial results for the first quarter of 2025.
This report was published in a specific company context. Recent departures from the European market. Tether has stopped operating with USDT across the European Union (EU) after the Crypto Market Regulation (MICA).
As Cryptootics reports, Tether CEO Paolo Ardoino argued that Tether would not adapt to Mica, saying, “The main problem is that regulations will provide a great risk to term coin emitters as they must maintain a reserve of 60% of the bank’s deposits.” In his opinion, meeting for the company was almost impossible demand.
In this connection, the company has set up its headquarters in El Salvador with the aim of strengthening its position in “one of the most avant-garde markets in the world.” This facilitates the development and implementation of a favorable regulatory environment for digital assets.
Theocepulveda, an economist from El Salvador, described the strategic movement as “a way to have a lesser, more formal façade.”
Despite the fact that it may have been a tough hit for the company, its first quarter report for 2025 shows a very different panorama. The thing is USDT reached a market capitalization of $149,000 millionexceeding the $5.6 billion reserve, guaranteeing its parity stability.
Increased supply saw an increase in the volume of active wallets by 13%. This amounts to 46 million new users compared to the previous quarter. They are also increasing investment in sectors such as renewable energy, artificial intelligence (AI), and telecommunications.
Please note that the document has reported by a company currently operated by Paolo Ardoino The operating profit for the first three months of the year was $10 million.
Despite solid performance, the company experienced a quarterly profit decline in its first quarter of 2024, with respect to $4.52 billion. This represents a yearly decline of over 77%.
The company’s surplus reserves also fell to $5.6 billion, down from the 710 million registered last quarter.
Token dispatch analysts believe that “Tether’s first quarter results show continuous resilience for businesses that have been effectively ousted from Europe due to regulatory pressures, while a decline in surplus reserves could represent future challenges to maintain an ambitious growth strategy.”
Tether’s first quarter report revealed that the company maintains approximately $120 million in US Treasury bonds.
These figures consolidate Tether as one of the largest public debt holders in the United States.
This large treasure exposure allows for tethering Strengthen your confidence in Stablecoin supportWhile generating substantial revenue from profits that generate these equipment.
In a high rate context, this strategy not only maintains USDT parity, but also makes the model highly profitable.
But that also means a strong dependence on the US financial system. This could represent a risk if the environment becomes unstable.
Analysts at investment firm Galaxy Research noted that Tether’s financial report shows a decline in revenue, but USDT continues to consolidate with a 62% market share as a giant in the Stablecoins sector.
They also pointed out that Tether is facing an increasingly challenging regulatory front in the United States, following the presentation of a project of water and responsibility for a better economy (stable), and the presentation of transparency and responsibility for the guidance and establishment of national innovation (genius) for a stable currency.
Here, the risk is that if a strict approach, stable law-like approach wins, “we may be forced to comply with all rules (even though not an arch-based entity) or face a ban. land It could disrupt its function, hinder its leadership position in the market, and introduce turbulence into a stable currency market. ”
The stable bill, released on March 26, 2025, imposes strict rules on issuing stubcoins, requiring a 1:1 for safe assets, monthly audits and total transparency of reserves.
Otherwise, operations within the tether US could be restricted or directly prohibited. This not only threatens market share, it only threatens it. It could make the global Stablecoins market unstableConsidering this is related to the international distribution of digital dollars.