Key Takeaways
- USDT market cap hit $187.3 billion, with over $10 billion in annual profit, despite a broader crypto market slowdown.
- User base reached approximately 534.5 million, while on-chain transfers set a record $4.4 trillion in Q4 volume.
- Fundraising plans were scaled back from a $20 billion target following investor pushback and valuation concerns.
Tether released its Q4 2025 attestation, highlighting continued growth despite a slowdown across the broader crypto market.
The report, prepared by auditing firm BDO, confirms the company’s strongest financial position to date, driven largely by interest income from U.S. Treasury holdings and a diversified asset base.
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User Growth and Transaction Surge Amid Market Slowdown
Tether’s user base expanded significantly, reaching an estimated 534.5 million users by the end of Q4 2025.
This marked an addition of 35.2 million new users during the quarter, extending an eight-quarter streak of growth exceeding 30 million users per quarter.
The estimate includes on-chain wallet holders as well as users on centralized platforms, with more than 100 million users holding USDT on exchanges.
On-chain USDT holders increased by 14.7 million, reaching 139.1 million wallets, accounting for 70.7% of all stablecoin wallets.
Monthly active on-chain users averaged a record 24.8 million, signaling sustained engagement despite market volatility.
Global crypto users approached 590 million, with Tether accounting for the majority.
Partnerships such as Opera’s MiniPay wallet expanded access in emerging markets, particularly across Africa and Latin America.
Tether’s market capitalization climbed to $187.3 billion, up $12.4 billion quarter over quarter, even as the broader crypto market contracted.
Total crypto market capitalization declined from a peak of $4.4 trillion to roughly $3 trillion by year-end.
Financially, total reserves increased to $193 billion, exceeding liabilities and resulting in $6.3 billion in excess reserves.
Tether reported net profits exceeding $10 billion for full-year 2025, primarily driven by interest income from U.S. Treasuries and returns on strategic investments.
This growth occurred amid a notable market correction.
The crypto sector experienced a 23.7% decline in Q4, triggered in part by a $19 billion liquidation cascade on Oct. 10.
Despite this, USDT volumes increased, reinforcing its role as the dominant stablecoin for value transfer.
Tether’s Q4 Overshadowed by Fundraising Setbacks
The final quarter of 2025 delivered strong operational performance for Tether, though it was later overshadowed by fundraising challenges.
In late 2025, Tether explored fundraising options reportedly targeting up to $20 billion at a $500 billion valuation, drawing interest from major investors.
However, discussions stalled amid valuation concerns and investor hesitation.
CEO Paolo Ardoino later described the $20 billion target as a “misconception,” with advisers suggesting a more modest $5 billion raise given market conditions and slowing sector-wide growth.
Tether’s market capitalization has since eased slightly to around $185 billion.
Despite the fundraising uncertainty, transaction activity surged.
On-chain USDT transfers reached a record $4.4 trillion in Q4, with $2.8 trillion attributed to single-asset transfers, giving USDT a 65.9% share of the stablecoin market.
Multi-asset transactions, commonly associated with DeFi activity, accounted for the remaining $1.6 trillion.
Tether also confirmed intervening to discourage secondary share sales that could have undermined ongoing valuation discussions.
The company said such activity has since ceased.
While profits declined by roughly 25% year over year, largely due to Bitcoin’s price weakness, Ardoino defended Tether’s reported $30 billion group equity, rejecting claims questioning the firm’s financial stability.
USDT issuance accelerated throughout 2025, with nearly $50 billion in new tokens minted—Tether’s second-highest annual issuance on record.
As of Dec. 31, 2025, total assets stood at approximately $192.9 billion, compared with $186.5 billion in liabilities.
This performance contrasted sharply with rival stablecoins, some of which saw market-cap declines of up to 57%.
By comparison, USDT expanded 3.5% following the October market shock, while its dominance in centralized exchange spot trading reached 61.5%, processing $3.2 trillion in volume during Q4.
