Largest Stablecoin Strengthens Dominance Amid $1 Billion Quarterly Profit
Tether’s circulating supply of USDT has surged past the $150 billion milestone for the first time, according to a company update released Monday. This achievement marks a new high for the stablecoin issuer as it continues to benefit from US Treasury investments and expansion across various blockchain platforms. Simultaneously, a historic shift has occurred in the structure of USDT distribution across blockchains: Tron has overtaken Ethereum for the first time, becoming the primary platform for Tether token issuance with a volume exceeding $73 billion.
Tron Becomes the Dominant Platform for USDT
Tether CEO Paolo Ardoino confirmed the record figure in a post on X, noting that Tron has become the largest blockchain for USDT issuance, overtaking Ethereum for the first time. Over $73 billion of the total supply has been issued on the Tron blockchain.
“This is a historic event in the stablecoin ecosystem,” notes Dmitry Korolev, lead analyst at cryptocurrency exchange BitFlyer. “Tron has been steadily increasing its share, offering lower fees and high transaction speeds, which is particularly attractive to users from emerging markets where microtransactions play an important role.”
The shift in balance toward Tron reflects a broader trend in the stablecoin ecosystem, where users and developers increasingly choose blockchains with low fees for everyday transactions, while Ethereum becomes a platform primarily for high-value DeFi applications with more complex smart contracts.
Tether Shows Record Profitability
The stablecoin’s growth coincides with Tether’s rising profitability. The company reported more than $1 billion in operating profit for the first quarter of 2025, buoyed by its growing exposure to US Treasurys. Tether said its total exposure to government debt, including indirect holdings through money market funds and repurchase agreements, approached $120 billion.
“A quarterly profit of $1 billion is an impressive figure that puts Tether on par with the world’s largest financial institutions,” comments Elena Vasilyeva, research director at the Blockchain Institute. “At current interest rates and with the size of Tether’s reserves, the company effectively earns about $12-15 million daily from interest income alone, making it one of the most profitable financial enterprises per employee.”
The majority of USDT reserves are backed by short-term US Treasurys, according to recent attestations. The firm’s strategy of conservative asset backing has helped solidify its dominant position in the stablecoin market, despite longstanding scrutiny over transparency and regulation.
Competitive Dynamics in the Stablecoin Market
Tether’s closest competitor, Circle, has approximately $60 billion in USDC tokens in circulation. Other stablecoin issuers such as Sky’s USDS, Ethena’s USDe, and Trump-linked USD1 remain below the $10 billion mark.
“The gap between Tether and Circle continues to widen, which may indicate differences in strategies and market perception,” notes Alexander Petrov, co-founder of crypto analytics platform TokenInsight. “While USDC positions itself as a more regulated and ‘US-centric’ stablecoin, USDT has gained a dominant position in international markets, especially in Asia and emerging markets, where US regulatory requirements are less important to users.”
Interestingly, despite the emergence of new stablecoins, including algorithmic ones and those backed by derivatives (like USDe), Tether’s traditional model based on reserve backing continues to dominate the market. This may indicate users’ conservatism regarding innovative but potentially riskier stability models.
Impact on Global Cryptocurrency Markets
Tether’s milestone underscores the growing role of stablecoins in global crypto markets and decentralized finance applications, particularly amid volatile macroeconomic conditions.
“Stablecoins, and especially USDT, increasingly function as the ‘dollar of the crypto economy’,” explains Mikhail Sokolov, lead economist at DigitalFuture Research. “As the total volume of stablecoins grows, we observe a parallel increase in liquidity and market depth throughout the crypto ecosystem. Each new billion in stablecoins potentially creates a multiplier effect for the overall market capitalization by increasing the available capital for trading and investment.”
The volume of $150 billion puts USDT on par with the money supply of some medium-sized countries and makes it a significant player even by traditional financial system standards. For comparison, the total market capitalization of gold ETFs is around $210 billion, indicating that USDT is approaching the scale of traditional asset classes.
Prospects and Challenges
Despite impressive growth, Tether continues to face challenges, especially in regulation. Stablecoins are under close scrutiny from regulators worldwide, and potential changes in the regulatory environment could significantly impact their further development.
“At $150 billion, Tether becomes too big for regulators to ignore,” warns Anna Maximova, digital asset regulation expert. “We expect that in the coming years, specific regulatory frameworks will be developed for stablecoins of this scale, especially given their potential systemic importance for financial markets.”
At the same time, Tether is actively diversifying its activities, investing in Bitcoin mining, artificial intelligence, and sustainable development projects. This strategy may help the company maintain its dominant position even amid tightening stablecoin regulation.
The growth of USDT supply to $150 billion and the leadership change in platforms for its issuance are important milestones not only for Tether but for the entire cryptocurrency industry. These events reflect the continuing evolution and maturation of the digital asset market, as well as the growing importance of stablecoins as a bridge between traditional and decentralized finance.