Tether’s dollar-pegged stablecoin, USDt, closed the fourth quarter of 2025 at a record $187.3 billion market capitalization, extending its lead even as the wider crypto market slid following October’s liquidation shock.
In its latest quarterly report, Tether said USDt added $12.4 billion in market value during Q4, underscoring its growing dominance amid several rival stablecoins losing ground.
Following the October 10 liquidation cascade, Circle’s USDC, the second-largest stablecoin, saw choppy movements throughout the quarter but ultimately ended Q4 nearly flat. Meanwhile, Ethena’s synthetic dollar USDe suffered a sharp 57% decline, highlighting the diverging fortunes within the stablecoin sector.
USDt onchain activity and reserves reach new highs
Onchain usage of USDt also surged to record levels during the quarter. Tether reported an average of 24.8 million monthly active USDt wallets, accounting for nearly 70% of all stablecoin-holding addresses.
Quarterly transfer volume jumped to $4.4 trillion, while the total number of onchain transactions reached 2.2 billion, reflecting sustained demand for USDt across trading, payments, and remittance use cases.
Tether’s balance sheet strengthened alongside the growth. Total reserves climbed to $192.9 billion by the end of Q4, up $11.7 billion from the previous quarter, leaving net equity of $6.3 billion. Exposure to U.S. Treasuries rose to $141.6 billion, placing Tether among the world’s largest holders, ahead of several sovereign nations.
Illicit use, compliance push, and US market expansion
Despite its growth, USDt remains the most frequently used stablecoin in illicit transactions. Blockchain analytics firm Bitrace estimated that $649 billion in stablecoins, about 5.14% of total stablecoin volume, passed through high-risk addresses in 2024, with Tron-based USDt accounting for more than 70% of that activity.
Tether says it has intensified efforts to curb misuse, rolling out collaborative monitoring and enforcement initiatives with TRM Labs and the Tron network to detect and freeze illicit funds.
In January, Tether expanded its regulatory footprint by launching USAt, a dollar-pegged stablecoin tailored for the U.S. market. Issued by Anchorage Digital Bank, USAt is compliant with the GENIUS Act and launched with an initial $10 million supply on the Ethereum network.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
