Table of Contents
Tether International, S.A. de C.V. (the issuer of USDT) maintains reserves exceeding its liabilities, ensuring the stablecoin's 1:1 backing with USD equivalents. As of September 30, 2025:
- Total Reserves (Assets): US$181,223,149,214
- Total Liabilities: US$174,445,364,503 (including US$174,356,634,812 in digital tokens issued)
- Excess Reserves (Equity): US$6,777,784,711 (approximately 3.9% overcollateralization)
The reserves are predominantly allocated to low-risk, liquid assets, with ~77% in cash equivalents (heavily weighted toward U.S. Treasury Bills and related instruments).
This structure supports USDT's stability amid growing circulation, which reached ~US$186.91 billion by January 18, 2026. Tether's strategy emphasizes safety and yield, generating over US$10 billion in profits for the first nine months of 2025, partly reinvested in assets like Bitcoin.
Key highlights:
- U.S. Treasuries exposure (direct and indirect): Approximately US$135-138 billion, positioning Tether as a top global holder of U.S. government debt.
- Diversification includes gold (7.13%) and Bitcoin (5.44%), adding resilience.
- No expected credit losses or material risks identified in the attestation.
Overview of Reserves
Tether's reserves back fiat-denominated tokens (primarily USDT) on a going-concern basis. Assets are valued at fair value or amortized cost per IFRS standards. The composition prioritizes liquidity for redemptions while generating interest income (e.g., from Treasuries).
High-Level Allocation:
| Category | Amount (USD) | Percentage of Total Reserves |
|---|---|---|
| Cash & Cash Equivalents & Other Short-Term Deposits | 139,952,471,042 | 77.23% |
| Precious Metals (Gold) | 12,921,449,635 | 7.13% |
| Bitcoin | 9,856,011,011 | 5.44% |
| Secured Loans | 14,604,086,904 | 8.06% |
| Other Investments | 3,874,458,261 | 2.14% |
| Corporate Bonds | 14,672,361 | 0.01% |
| Total Reserves | 181,223,149,214 | 100% |
This allocation reflects a conservative approach, with over 80% in government-backed or equivalent securities.
For visual representation, here are pie charts illustrating Tether's reserve composition based on recent analyses (aligned with the September 2025 data):
Detailed Composition Breakdown
1. Cash & Cash Equivalents & Other Short-Term Deposits (US$139,952,471,042)
This category forms the liquidity core, ensuring quick redemptions. Sub-breakdown:
| Sub-Category | Amount (USD) | Percentage of Category | Notes |
|---|---|---|---|
| U.S. Treasury Bills | 112,417,034,272 | 80.33% | Direct holdings; average maturity <90 days. |
| Overnight Reverse Repurchase Agreements | 17,991,468,781 | 12.86% | 1-day maturity; collateralized by US Treasuries (fair value: US$17,985,591,094); issuer rated A-2. |
| Term Reverse Repurchase Agreements | 3,056,191,686 | 2.18% | Average maturity <90 days; fully collateralized; issuer rated A-2. |
| Money Market Funds | 6,409,774,689 | 4.58% | Indirect US Treasuries exposure: US$4,709,253,526. |
| Cash & Bank Deposits | 30,100,334 | 0.02% | Minimal exposure. |
| Non-U.S. Treasury Bills | 47,901,280 | 0.03% | Average maturity <270 days. |
Total indirect/direct US Treasuries in this category: ~US$135+ billion (including collateral and indirect exposure).
2. Precious Metals (US$12,921,449,635; 7.13%)
- Primarily LBMA-standard physical gold bars.
- Includes US$496,632,928 for gold purchased but not yet in custody (delivery post-report date; risks/rewards transferred).
3. Bitcoin (US$9,856,011,011; 5.44%)
- Held on-chain in company-controlled wallets.
- Valued at US$114,160 per BTC (as of 11:59 PM UTC, September 30, 2025).
- Represents strategic diversification; holdings have increased post-report with profit allocations (e.g., ~8,888 BTC added in early 2026).
4. Secured Loans (US$14,604,086,904; 8.06%)
- Over-collateralized by liquid assets with margin calls and liquidation protections.
- Measured at amortized cost; no expected credit losses per IFRS 9.
- None to affiliated entities.
5. Other Investments (US$3,874,458,261; 2.14%)
- Miscellaneous investments not fitting other categories.
6. Corporate Bonds (US$14,672,361; 0.01%)
- Short-term (average maturity <90 days).
Current Status and Trends (as of January 2026)
- USDT Circulation: Approximately US$186.91 billion (net circulation per daily transparency updates), up ~US$12.5 billion since September 2025.
- Implied Reserves Growth: Reserves likely exceed US$193 billion now, maintaining similar composition (heavy Treasuries focus) based on Tether's strategy.
- Profit Reinvestment: YTD 2025 profits >US$10 billion; 15% often allocated to Bitcoin, enhancing holdings.
- Global Ranking: Tether's US Treasuries exposure ranks it ~17th worldwide among holders, ahead of several nations.
Notes and Considerations
- Valuation and Risks: Assets at fair value/amortized cost; no credit losses. Report assumes going concern; no liquidity/market risk assurance.
- Litigation: No provisions for ongoing cases (e.g., Bitcoin class action, Celsius settlement post-dated report).
- Scope: Attestation covers only September 30, 2025; dynamic nature means figures fluctuate with issuance/redemptions.
- Transparency: Quarterly attestations (not full audits) by BDO; critics note gaps in custodian details.
- Sources: Data from Tether's official report (October 31, 2025 publication). For updates, visit tether.to/en/transparency.
This report provides a comprehensive view of USDT's backing, underscoring its role in crypto liquidity while supporting U.S. debt markets.
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