"Tether, the 'stablecoin giant', earned $1 billion last year, a 23% year-on-year decrease."

As the world’s largest stablecoin issuer, Tether, initiates a new round of financing, its projected profit for 2025 has fallen sharply. The company, which is set to rank among the world’s most valuable private firms, faces a test of its profitability.

In a recent statement, Tether revealed that the company expects a profit of $10 billion in 2025, a 23% decrease from the previous year’s $13 billion. This announcement comes as the company conducts a fundraising round, after which its valuation will rank among the top private companies globally.

Tether CEO Paolo Ardoino said in a press release:

"For 2025, what matters is not only the scale of growth but also the structure behind it. The expansion of USDT is driven by the global demand for dollars increasingly shifting outside of traditional banking systems, especially in regions where financial infrastructure is slow, fragmented, or difficult to access."

However, Tether’s statement did not explain the specific reasons for the changes in profit or revenue. Due to limited disclosure, outsiders find it difficult to accurately identify the driving factors behind the annual profit decline.

Cryptocurrency Downtrend May Impact Performance

Tether raises funds by issuing digital tokens and invests these funds in assets aimed at keeping its USDT stablecoin pegged to the US dollar. The company invests reserves in a broad range of asset classes, including cryptocurrencies. Since October last year, the cryptocurrency market has experienced a downturn, which may have pressured Tether’s investment returns. But due to limited disclosure, the exact reasons for its profit decline remain unclear to outsiders.

USDT is currently the largest stablecoin, with a circulation exceeding $185 billion. The stablecoin is widely used by cryptocurrency traders, giving Tether a steady source of income.

Notably, Tether’s financial data is reviewed by a firm called BDO, but such reviews cannot be compared to standardized audits conducted on regulated companies. This means investors and market participants face higher information asymmetry risk when assessing the company's financial health.

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