What is expected in the development of USDT?
Tether is focusing on simplifying its technology and expanding into new markets.
- Phasing Out Older Blockchains (August 29, 2025) – Tether will stop issuing and redeeming USDT on five older blockchains to improve efficiency.
- Launching USDT on Bitcoin via RGB (August 28, 2025) – USDT will be available directly on the Bitcoin blockchain, allowing private and scalable transactions.
- Introducing USA₮ for the U.S. Market (September 12, 2025) – A new regulated, dollar-backed stablecoin called USA₮ will launch if the GENIUS Act passes.
In-Depth Look
1. Phasing Out Older Blockchains (August 29, 2025)
Tether is ending support for USDT on five older blockchains: Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand (Tether). Instead of freezing tokens, Tether will stop issuing new USDT and redeeming tokens on these chains but will still allow users to transfer existing tokens. These blockchains currently hold less than 0.1% of all USDT, so this change helps Tether focus on more active and scalable networks.
What this means: This move should make Tether’s operations more secure and cost-effective. However, users and projects on these older blockchains will need to move their USDT to supported networks, which could cause some short-term inconvenience.
2. Launching USDT on Bitcoin via RGB (August 28, 2025)
Tether plans to launch USDT on the RGB protocol, which allows assets to be issued directly on the Bitcoin blockchain (Tether). This means users can hold and transfer USDT alongside Bitcoin in the same wallet. The system supports private transactions and offline transfers, making it more versatile.
What this means: This is a positive development for USDT, as it leverages Bitcoin’s strong security and large user base. It opens up new possibilities like private payments and small transactions using Bitcoin’s Lightning Network. The main challenge will be how quickly this new system is adopted.
3. Introducing USA₮ for the U.S. Market (September 12, 2025)
Tether announced USA₮, a new stablecoin regulated in the U.S. and backed by the dollar. Bo Hines, a former White House crypto official, will lead this project as CEO (Tether). The launch depends on the GENIUS Act, a proposed law that would clarify rules for digital assets in the U.S.
What this means: Entering the regulated U.S. market could bring significant institutional investment and strengthen USDT’s position as a dollar-backed stablecoin. However, this plan depends on the GENIUS Act becoming law, which is not guaranteed.
Conclusion
Tether is streamlining its technology by retiring older blockchains while pushing forward with new growth opportunities like Bitcoin integration and a regulated U.S. stablecoin. This balanced approach aims to keep USDT strong and relevant in the future. The big question remains: will the U.S. regulatory environment support the launch of USA₮?
What updates are there in the USDT code base?
Tether’s latest technical update is a new toolkit designed to help developers build better wallets.
- Wallet Development Kit Announced (June 10, 2025) – A new peer-to-peer toolkit that improves how wallets sync and process transactions.
Deep Dive
1. Wallet Development Kit Announced (June 10, 2025)
Overview: Tether is launching a Wallet Development Kit (WDK) to assist developers in creating wallets that work more efficiently. This toolkit uses peer-to-peer technology, which means wallets can connect directly with each other to sync data and send transactions faster.
Traditionally, wallets rely on central servers to communicate with the blockchain, which can slow things down or create points of failure. By using peer-to-peer connections, the WDK aims to make wallets more reliable and quicker. The first wallet to use this new system will be the Rumble Wallet, with an updated version of the WDK expected soon.
What this means: This is good news for Tether USDt (USDT) users because it shows a commitment to improving the technology behind the stablecoin. For everyday users, this could translate into faster and more dependable transactions when using wallets built with this new toolkit, making it easier and smoother to hold and move USDT.
(Tether)
Conclusion
The Wallet Development Kit announcement highlights Tether’s focus on strengthening the technology that supports USDT. By enabling faster and more decentralized transaction methods, this toolkit could improve the overall user experience. The key question now is how quickly wallet developers will adopt this new technology to benefit users.
USDT Issuer Reports Over $10B 2025 Profit
Tether, the company behind Tether USDt (USDT), reported earning over $10 billion in net profit in 2025, mostly from interest on its large reserve holdings.
- Tether’s net profit for 2025 was more than $10 billion, though some reports suggest it was slightly less than the $13 billion earned in 2024.
- Most of these profits come from investments in U.S. Treasury bills, gold, and Bitcoin, which help build financial strength but also concentrate risk in a few asset types and loans.
- Key things to watch include future reserve audits, stablecoin regulations, and how Tether uses these profits in areas like Bitcoin mining, tokenized gold, and payment services.
Deep Dive
1. Size and Sources of Profit
Several reports show that Tether made over $10 billion in net profit in 2025. This was mainly due to interest earned on its reserve assets, especially since interest rates on U.S. Treasury bills and similar cash-like investments remained high. One detailed report estimates Tether’s net profit at about $10 billion for 2025, down from around $13 billion in 2024. Only about $30 million of the 2025 profit came in the last quarter, with the rest coming from earlier interest and gains in gold prices.
Tether’s supply of USDT and its holdings of U.S. Treasuries grew significantly during the year. When short-term interest rates are high, this naturally increases interest income. Tether also holds large amounts of gold and Bitcoin, so changes in the market value of these assets also affect its profits.
2. Reserves, Strength, and Risk
Recent reports show that by the end of 2025, Tether backed about $186.5 billion worth of USDT tokens. Of this, around $122.3 billion was held in U.S. Treasury bills, with total direct and indirect Treasury exposure exceeding $141 billion. Tether also held about $17.45 billion in precious metals like gold and $8.4 billion in Bitcoin. The same report noted that “secured loans” increased to over $17 billion, while Tether’s equity (its financial cushion) was about $6.4 billion. S&P Global rated USDT’s stability as weak because of the mix of assets and a decline in pure cash holdings.
While big profits increase Tether’s equity and help it handle financial shocks, the mix of reserves remains important. A large portion in Treasuries ties USDT’s value to traditional interest rate and liquidity cycles. Meanwhile, big holdings in gold and Bitcoin add market volatility, and large secured loans bring risks related to the borrowers and transparency.
What this means: USDT’s backing looks strong in numbers, but its safety depends on the quality, liquidity, and transparency of its reserves—not just the headline profit figures.
3. How It Affects Crypto Users
For traders and decentralized finance (DeFi) users, Tether’s large profit shows that running a stablecoin business can be very profitable at scale. It also means Tether has money to invest in new projects. Recent initiatives include an open-source Bitcoin mining operating system and tools, which reports link directly to Tether’s 2025 profits. Tether is also expanding tokenized gold offerings and payment partnerships, such as with Opera’s MiniPay wallet.
Looking ahead, three things are most important: the detail and independence of future reserve audits, any changes in the mix of Treasuries versus loans and volatile assets, and how regulators in major countries decide to oversee large global stablecoins.
Conclusion
Tether’s report of over $10 billion in profit for 2025 highlights how profitable a leading dollar-backed stablecoin can be when interest rates and supply are high. This profit strengthens Tether’s financial position and funds growth into areas like mining, tokenization, and payments. However, it also emphasizes how much of the crypto world depends on one private company, whose risk depends heavily on the quality and transparency of its reserves and future regulations.
What could affect the price of USDT?
Tether’s future depends on balancing its widespread use with growing regulatory and transparency challenges.
- Regulatory Crackdowns – New U.S. and European laws could limit access or add costly rules, putting USDT’s market dominance and price stability at risk.
- Reserve Transparency – A “weak” rating from S&P points to risks from Bitcoin and gold holdings; a full independent audit is key to building trust.
- Market Competition & Adoption – Competitors like USDC and bank-backed stablecoins are gaining ground, but real-world payment use keeps demand for USDT strong.
Deep Dive
1. Regulatory & Compliance Pressures (Bearish Impact)
Overview: Tether is facing tighter regulations worldwide. In the U.S., the GENIUS Act, currently moving through the Senate, would require stablecoin issuers to hold 100% liquid reserves and be federally regulated (Yahoo Finance). In Europe, the MiCA rules have already caused major exchanges to delist or limit USDT for users in the European Economic Area (Bitrue). These changes could reduce liquidity and increase costs for Tether.
What this means: Stricter regulations may force Tether to change how it operates or lose access to important markets. This could lower demand and create pressure on USDT’s price peg, especially if users find it harder to redeem their tokens, possibly causing short-term price drops during stressful periods.
2. Reserve Transparency & Composition (Mixed Impact)
Overview: Tether’s reserves are mostly safe assets like U.S. Treasuries and cash (about 75%), but also include around 5.6% in Bitcoin and some gold holdings (Cointelegraph). In November 2025, S&P downgraded USDT’s stability rating to “weak” due to these volatile assets and limited transparency. While Tether reports strong profits and extra equity, it has yet to complete a full independent audit, which remains a concern.
What this means: The large portion of stable assets helps keep USDT steady, but the riskier Bitcoin and gold holdings could cause problems if their values drop sharply. A full, verified audit would greatly increase confidence in Tether. On the other hand, if any shortfall in reserves is revealed, it could cause a serious loss of trust and a lasting break in the peg.
3. Market Competition & Real-World Adoption (Bullish Impact)
Overview: The stablecoin market recently hit a record $311 billion, with USDT holding about 60% of that share (Coinpedia). Growth is driven by real-world uses like payments, remittances, and crypto debit cards, such as Kolo’s integration with the TRON network (Cointelegraph). However, competitors like USDC, which now holds about 25% of the market, and bank-backed stablecoins are gaining popularity due to perceived stronger compliance.
What this means: USDT’s widespread use, especially in emerging markets, creates a strong network effect that supports steady demand. This makes a permanent and widespread loss of its price peg unlikely unless there is a major failure. The positive outlook depends on continued organic growth outpacing regulatory and competitive challenges.
Conclusion
USDT’s price stability faces the biggest risks from regulatory changes and questions about its reserves, but its broad adoption offers a strong safety net. For holders, the near-term outlook is stable, assuming no major regulatory shocks occur. The big question is whether Tether’s efforts to become a fully U.S.-regulated stablecoin with a complete audit will finally satisfy critics and secure its price peg.
What are people saying about USDT?
Tether is at the center of ongoing discussions, showing both challenges and growth opportunities in the crypto world. Here’s a quick summary:
- S&P’s "Weak" rating raises concerns about USDT’s reserves and financial stability.
- Tether’s record $10 billion profits and large U.S. Treasury holdings show strong financial footing.
- Allegations of USDT being used to bypass sanctions highlight regulatory risks.
- Large transfers by big holders suggest upcoming market moves, stirring debates on liquidity and volatility.
- Expanding into AI and Bitcoin mining aims to secure Tether’s future relevance.
Deep Dive
1. S&P Downgrade Sparks Reserve Worries ⚠️ bearish
@RobynHD reports that S&P has downgraded Tether to its lowest rating, "Weak."
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What this means: This downgrade is negative for USDT because it points to increased exposure to risky assets like Bitcoin and gold, along with unclear financial disclosures. This raises doubts about whether USDT can maintain its 1:1 value peg during tough market conditions.
2. $10 Billion Profit and Treasury Holdings Signal Strength 💰 bullish
@CryptosR_Us shares that Tether made about $10 billion in net profit in 2025 and holds over $141 billion in U.S. Treasuries.
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What this means: This is a positive sign for USDT. High profits and large Treasury reserves show Tether’s ability to meet redemption demands and support its dominant 60% share of the stablecoin market.
3. USDT Linked to Sanctions Evasion in Iran 🕵️ bearish
@CryptoPatel reports that Iran’s Central Bank secretly acquired $507 million in USDT to support its weakening currency.
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What this means: This raises regulatory concerns for USDT. Authorities are investigating its use in evading sanctions, which could lead to frozen assets (like $37 million already frozen by Tether) and stricter rules that might limit USDT’s adoption.
4. Large USDT Transfers Point to Market Activity 🐋 mixed
@VU_virtuals notes a transfer of 180 million USDT from Tether’s treasury to Bitfinex.
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What this means: This is neutral for USDT. Big transfers like this often happen before market moves, increasing liquidity for potential price rallies but also possibly leading to selling pressure. It reflects trader strategies rather than fundamental risks.
5. Tether Expands into AI and Bitcoin Mining 🚀 bullish
@Tether_to announces Tether’s launch of MiningOS, an operating system designed to improve Bitcoin mining.
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What this means: This is a positive development for USDT. By branching into Bitcoin mining and AI, Tether is reducing its dependence on stablecoin revenue and positioning itself as a key player in crypto infrastructure, which could help it navigate regulatory challenges.
Conclusion
Overall, opinions on USDT are mixed. While Tether shows strong profits and solid Treasury holdings, regulatory downgrades and sanctions-related issues pose risks. Keep an eye on Tether’s U.S. Treasury holdings (currently $141 billion); if they fall below 75% of total reserves, it could indicate increased risk, as warned by S&P.
What is the latest news about USDT?
Tether is expanding beyond its role as a stablecoin by launching new Bitcoin mining technology and integrating with global payment systems. At the same time, it faces regulatory investigations over possible sanctions violations.
- MiningOS Launch (February 3, 2026) – Tether introduced an open-source operating system for Bitcoin mining to help decentralize mining infrastructure.
- Kolo TRON Integration (February 3, 2026) – TRC-20 USDT is now supported for instant payments on crypto cards, making it easier to use USDT in everyday purchases.
- Iran Sanctions Investigation (February 3, 2026) – U.S. authorities are probing Tether’s involvement in $8-10 billion worth of Iranian cryptocurrency transactions.
In-Depth Look
1. MiningOS Launch (February 3, 2026)
What happened: At the Plan ₿ Forum in San Salvador, Tether launched MiningOS (MOS), an open-source operating system designed for Bitcoin mining. It works with various hardware and helps manage energy use and performance through a peer-to-peer system. This move marks Tether’s entry into Bitcoin mining infrastructure, beyond just offering stablecoins.
Why it matters: This development could be positive for Tether USDt (USDT) because it opens new revenue opportunities and helps strengthen the Bitcoin network’s security. A stronger Bitcoin network may increase confidence in USDT. However, mining profits can be unpredictable due to Bitcoin’s price swings, so there are risks involved.
(Cointribune)
2. Kolo TRON Integration (February 3, 2026)
What happened: The crypto platform Kolo, based in Lisbon, integrated with the TRON blockchain to enable instant payments using TRC-20 USDT on its crypto cards. This allows users to spend USDT at merchants with real-time transaction processing. Kolo has processed over $250 million in transactions, with 30% happening via TRON. The CEO highlighted TRON’s ability to handle large daily payment volumes.
Why it matters: This is good news for USDT because it makes the stablecoin more useful for everyday payments, especially in areas where traditional banking is limited. Increased use in real-world transactions can boost USDT’s adoption and network growth.
(Cointelegraph)
3. Iran Sanctions Investigation (February 3, 2026)
What happened: U.S. investigators are looking into whether Tether helped Iran evade sanctions through cryptocurrency. Reports show Iran’s central bank bought over $507 million in USDT to bypass traditional banking systems. Additionally, $3 billion in transactions linked to Iran’s Islamic Revolutionary Guard Corps (IRGC) have been identified since 2023.
Why it matters: This is a negative development for USDT, as it raises regulatory and reputational risks. If Tether is found to have facilitated sanctions evasion, it could face legal actions from U.S. authorities. However, Tether’s strict compliance policies and partnerships may help reduce potential penalties.
(Yahoo Finance)
Conclusion
Tether is actively broadening its business by investing in Bitcoin mining technology and expanding payment options for USDT. However, it must carefully manage increasing regulatory scrutiny, especially related to sanctions. Watch for updates in early 2026, including transparency reports and TRON payment volumes, to see how these efforts impact USDT’s growth and acceptance.