USDt expanded to a record $187.3 billion in market capitalization in the fourth quarter of 2025, even as the broader crypto market declined after October’s liquidation cascade. According to its quarterly report, USDt’s market cap increased by $12.4 billion in Q4. On-chain activity also climbed to new highs, with the average number of monthly active USDt wallets reaching 24.8 million, representing almost 70% of all stablecoin-holding wallets.
Total quarterly transfer volume rose to $4.4 trillion, and the number of on-chain transfers reached 2.2 billion. Tether reported total reserves of $192.9 billion at the end of Q4, up $11.7 billion from the previous quarter, leaving net equity of $6.3 billion. Its exposure to US Treasuries increased to $141.6 billion, placing it among the largest holders globally and ahead of several sovereign nations.
Approximately two-thirds of USDt supply is held in savings wallets and centralized exchanges, with the remaining third supporting activities tied to payments, remittances, and decentralized finance. USDt is also the most commonly used stablecoin in illicit transfers; Bitrace reported that $649 billion in stablecoins, or about 5.14% of total stablecoin transaction volume, flowed through high-risk blockchain addresses in 2024, with Tron-based USDt accounting for more than 70% of the activity. Tether has stepped up efforts to curb illicit use, launching collaborative programs with TRM Labs and Tron to monitor and freeze illicit funds.
In January, Tether launched USAt, a dollar-pegged stablecoin built specifically for the US market. Issued by Anchorage Digital Bank, USAt is a stablecoin compliant with the US GENIUS Act, with $10 million initial supply on Ethereum. On Monday, Tether and Opera partnered to broaden access to digital payments in emerging markets by integrating USDt and Tether Gold (XAUT) into Opera’s MiniPay wallet.
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