Tether’s Reserves Look More Like a Central Bank Than a Crypto Company
Tether’s latest financial report reads less like a typical stablecoin issuer and more like something you’d expect from a small country. According to its Q2 2025 attestation by auditing firm BDO, the company holds $162.57 billion in assets—about $5.46 billion more than its liabilities. That surplus is unusual in crypto, where many projects operate on razor-thin margins. But what’s really striking is where Tether’s money is parked.
With $127 billion in U.S. Treasuries, Tether now holds more government debt than South Korea, Germany, or the UAE. That puts it at 18th globally, wedged between Saudi Arabia and a handful of G20 nations. For a private company, that’s unheard of.
A Balance Sheet That Rivals Central Banks
Side by side, Tether’s reserves and the Federal Reserve’s balance sheet share some eerie similarities—just on wildly different scales. Both lean heavily on U.S. Treasuries (Tether: $105.5 billion, Fed: $4.77 trillion) and use short-term instruments like reverse repos to manage liquidity. The big difference? Tether holds $8.9 billion in Bitcoin and $8.7 billion in gold—assets no major central bank touches.
At first glance, comparing Tether to the Fed might seem like overreach. But the key distinction is in how they handle surpluses. The Fed sends excess funds to the U.S. Treasury, while Tether keeps its $5.47 billion buffer—about 3.4% of its total assets. That’s a stronger equity position than many banks under Basel III rules.
Then there’s the $7.357 billion in dividends Tether paid out in the first half of 2025. Numbers like that make it clear this isn’t just another crypto project.
Why This Stands Out in the Stablecoin Market
Most stablecoin issuers, like Circle with its USDC, aim for a near-perfect match between assets and liabilities. Circle’s $55.7 billion reserves are mostly in Treasuries and repurchase agreements, with little wiggle room. Tether, though, operates with a cushion big enough to absorb shocks without scrambling to liquidate reserves.
It’s the kind of safety net central banks try to maintain—except Tether built it privately. Whether that’s a blueprint for future stablecoins or just a one-off success story is still unclear.
The Move to El Salvador and Regulatory Tightrope
Earlier this year, Tether relocated its base from the British Virgin Islands to El Salvador—a country that made Bitcoin legal tender. The shift came after securing a local license, but Tether still complies with U.S. anti-money laundering rules through its FinCEN registration.
Walking that line—embracing crypto-friendly regulation while keeping ties to traditional finance—might be messy, but it’s working. For now, Tether isn’t just a stablecoin issuer. It’s something closer to a shadow central bank, whether the crypto world expected one or not.
