The world's largest stablecoin issuer, Tether, is facing a test of profitability as it initiates a financing process while experiencing a significant decline in profits for 2025. This company, which is about to join the ranks of the highest-valued private companies globally, reported a profit of $10 billion for 2025, a 23% decrease from $13 billion the previous year. At the time of this performance announcement, the company is undergoing a round of financing, which will place its valuation among the top private companies upon completion.
Tether's CEO, Paolo Ardoino, stated in a press release:
<blockquote>
&#34;What is important in 2025 is not just the scale of growth, but the structure behind it. The expansion of USDT is due to the increasing global demand for the dollar shifting more towards outside the traditional banking system, especially in areas where the financial system is slow, fragmented, or difficult to access.&#34;
</blockquote>
However, Tether did not explain the specific reasons for the changes in profit or revenue in its statement. Due to the limited information disclosed by the company, it is difficult for outsiders to accurately determine the driving factors behind the annual profit decline.
<h2>Cryptocurrency Downturn May Weigh on Performance</h2>
Tether raises funds by issuing digital tokens and invests these funds in assets aimed at maintaining the peg of its USDT stablecoin to the dollar. The company invests its reserves in a wide range of asset classes, including cryptocurrencies. Since October of last year, the digital currency market has experienced a downturn, which may put pressure on Tether's investment returns. However, due to the limited scope of the company's disclosures, it is challenging for outsiders to precisely analyze the reasons for the profit decline.
USDT is currently the largest stablecoin, with a circulation exceeding $185 billion. This stablecoin is widely used by cryptocurrency traders. Its market position provides Tether with a continuous source of income.
It is worth noting that Tether's financial data is reviewed by a company called BDO, but this review cannot be compared to the standardized audits accepted by regulated companies. This means that investors and market participants face a higher risk of information asymmetry when assessing the company's financial condition

Stablecoin giant Tether disclosed a profit of $10 billion for 2025, a year-on-year decrease of 23%, coinciding with its high-valuation financing efforts. Although the CEO emphasized the expansion of USDT in the non-traditional financial sector, profitability is under pressure due to the downturn in the cryptocurrency market and fluctuations in reserve investments

- Tether reported a significant profit decline in 2025, with earnings dropping to $10 billion from $13 billion the previous year.  
- The company's CEO noted that despite the profits falling, USDT's expansion stems from increased global demand for dollars outside traditional banking systems.  
- However, the lack of detailed disclosure regarding profit changes makes it difficult to assess the exact causes of the downturn, with cryptocurrency market declines potentially impacting Tether's returns.

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Tether, the 'king of stablecoins,' earned $10 billion last year, a year-on-year decrease of 23%