Tether Surpasses 500 Million Users and $10 Billion Profits — But the Peg Wobbles
📋 En bref (TL;DR)
- 500 million users: Tether surpasses half a billion USDT users, adding 35 million new users in Q4 2025
- $10 billion in profits: Record annual earnings for the largest stablecoin issuer worldwide
- $187 billion in circulation: USDT market cap approaches Ethereum’s, fueling “flippening” speculation
- $141 billion in Treasuries: Tether would rank among the world’s largest US Treasury holders
- Peg under pressure: USDT dropped to $0.998, its lowest level in 5 years, reviving concerns
- Fundraise scaled back: Tether reduces capital raise from $20B to $5B after investor skepticism on $500B valuation
Tether shatters all records despite crypto storm
While the crypto market has lost over 30% since October 2025, Tether publishes gravity-defying numbers. In its Q4 2025 report, the largest stablecoin issuer reveals it has surpassed 534 million users—a figure placing it among the world’s most-used financial services.
This eighth consecutive quarter with over 30 million new users confirms a trend: USDT is no longer just a trading tool but is becoming a true reference currency for payments and savings in emerging markets.
Reserves rivaling nation-states
Tether’s balance sheet figures are staggering. With $192.9 billion in total reserves, including $141.6 billion in US Treasury bills, the company would—if it were a country—rank among the top 20 largest US creditors.
The diversification strategy continues:
- 96,184 BTC in Bitcoin reserves (approximately $7 billion)
- 127.5 metric tons of gold stored in Swiss vaults
- $6.3 billion excess reserves beyond the 1:1 backing
These figures explain how Tether generated $10 billion in profits in 2025—primarily through interest earned on its Treasuries.
The depeg shadow: $0.998, the warning signal
Behind these triumphant figures, concern persists. On February 5, 2026, USDT briefly dropped to $0.998—its lowest level in over 5 years. A 0.2% deviation may seem trivial, but for a stablecoin meant to be worth exactly $1, it’s a signal markets watch closely.
Several factors explain this pressure:
- Massive $775 million liquidation in the crypto market
- Unverified rumors amplified on social media
- Increased redemption demand during stress periods
The peg quickly recovered, but the episode reminds us of the systemic risk Tether represents. With 61.5% of spot trading volume on centralized exchanges, a prolonged depeg would have catastrophic consequences for the entire ecosystem.
The fundraise controversy
Another sign of tension: Tether had to scale back its fundraising ambitions. Initially set at $20 billion with a target valuation of $500 billion, the operation was reduced to $5 billion after investor skepticism, according to the Financial Times.
This pullback raises questions. With $10 billion in annual profits, why would Tether need to raise funds? Hypotheses range from geographic expansion (emerging markets, new currencies) to diversification into other activities (AI, mining).
USDT vs Ethereum: the “flippening” in sight?
With a market cap of $187 billion, Tether is dangerously close to Ethereum, whose market cap hovers around $200 billion in early February. Some analysts now discuss a potential “flippening”—the moment when USDT would surpass ETH.
This scenario, unthinkable just a year ago, illustrates capital rotation toward “safe haven” assets during bear markets. When Bitcoin loses 40%, investors seek refuge in stablecoins rather than exiting the market entirely.
The Tether paradox: too big to fail?
Tether has become what regulators call a “systemically important” player. Its market dominance creates circular dependency:
- Exchanges use USDT as the primary trading pair
- DeFi protocols integrate it into their liquidity pools
- Users prefer it for its superior liquidity
This dominant position makes the ecosystem vulnerable. If Tether were to encounter difficulties—regulatory, technical, or confidence-related—the repercussions would be felt well beyond USDT itself.
What the numbers don’t tell
Tether’s report, while detailed, leaves some questions unanswered. The user count (534 million) includes estimates of exchange users, making independent verification difficult. Quarterly attestations are not full audits in the accounting sense.
Additionally, the new US stablecoin legislation, signed by President Trump, changes the game. While it strengthens Tether’s legitimacy in the United States, it also imposes increased transparency and reserve requirements.
Conclusion: a giant with feet of clay?
Tether embodies the stablecoin paradox: indispensable to daily crypto market operations yet carrying systemic risks the industry struggles to quantify. The 500 million users and $10 billion in profits attest to real utility. But the brief depeg to $0.998 reminds us that confidence in stablecoins can evaporate as quickly as it was built.
For investors, the lesson is clear: diversifying stablecoin exposure (USDT, USDC, DAI) remains an elementary precaution, regardless of reassuring quarterly report figures.
📚 Glossary
- Tether : Company issuing USDT, the world’s largest stablecoin. Founded in 2014, based in the British Virgin Islands.
- USDT : Tether USD, stablecoin pegged to the US dollar. Over $187 billion in circulation as of February 2026.
- Stablecoin : Cryptocurrency designed to maintain stable value, typically pegged 1:1 to a fiat currency.
- Peg : Anchoring of a stablecoin’s value to its reference currency. A depeg refers to temporary loss of this anchor.
- Ethereum : Second-largest cryptocurrency by market cap, smart contract platform competing with USDT in market cap terms.
- Treasuries : US Treasury bills, considered the world’s safest asset. Tether holds $141 billion worth.
Frequently Asked Questions
Is USDT really backed 1:1 by dollars?
Tether claims each USDT is backed by equivalent reserves, primarily US Treasury bills ($141 billion), with a $6.3 billion surplus. However, these figures come from quarterly attestations, not complete independent audits.
Why did USDT drop to $0.998?
This slight depeg is explained by a combination of massive market liquidations ($775M), rumors amplified on social media, and increased redemption demand during the stress period. The peg quickly recovered.
Can Tether surpass Ethereum in market cap?
It’s technically possible. With $187 billion versus ~$200 billion for ETH, the gap is narrowing. In a prolonged bear market, capital flows into stablecoins, which could trigger this “flippening.”
What are the risks of using USDT?
Main risks include: potential depeg in case of confidence crisis, regulatory exposure (Tether has already paid fines), and counterparty risk if reserves aren’t as solid as announced.
📰 Sources
This article is based on the following sources:
- BeInCrypto – Tether Surpasses 500 Million Users
- Tether Q4 2025 Market Report
- Financial Times – Tether scales back capital raise
- FXStreet – Crypto market liquidations
Comment citer cet article : Fibo Crypto. (2026). Tether Surpasses 500 Million Users and $10 Billion Profits — But the Peg Wobbles. Consulté le 5 March 2026 sur https://fibo-crypto.fr/en/blog/tether-500-million-users-10-billion-profits-peg
