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Will Tether be declared insolvent by the end of Q4 2025?

Will Tether be declared insolvent by the end of Q4 2025?

Unlikely•Battery level: 15%15%•1 month

Executive Summary

Tether's solvency appears robust, supported by consistent excess reserves and significant diversification into U.S. Treasuries as per regular BDO attestations throughout 2025. While critics call for full audits, the available data indicates a strong financial position, making insolvency by Q4 2025 unlikely.

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Predictions are AI-generated for informational purposes only and are not financial, investment, or betting advice. Always do your own research and use independent judgment.

1d ago•

Key Insights

  • Tether maintains significant excess reserves.
  • Reserve diversification into U.S. Treasuries is robust.
  • Regular BDO attestations build market confidence.
  • Profitability and asset growth show financial strength.

Tether Solvency: 2025 Assurance & Strong Reserves

Concerns regarding Tether's (USDT) solvency have been a recurring theme in the cryptocurrency market. However, 2025 has seen Tether actively address these concerns through regular attestations and a strategic diversification of its reserves, maintaining a positive financial standing throughout the year.

Throughout 2025, Tether has engaged BDO, a top-five global independent accounting firm, to conduct quarterly attestation reports, aimed at providing transparency into the assets backing USDT. These reports indicate that Tether's reserves consistently exceeded its liabilities.

Key Financial Highlights from 2025 Attestations:

  • Q1 2025: An attestation released in May 2025 reported Tether's total assets at $149.28 billion against liabilities of $143.68 billion, resulting in excess reserves of $5.6 billion. Over 90% of reserves were held in cash and cash equivalents, with U.S. Treasuries accounting for over 75% [1]. This quarter also marked Tether's first attestation under El Salvador's regulatory oversight after obtaining a stablecoin issuer license.
  • Q2 2025: By the end of June 2025, Tether announced a net profit of approximately $4.9 billion for the quarter, bringing the year-to-date profit to $5.7 billion. The circulating supply of USDT grew to over $157 billion, a $20 billion increase year-to-date. Tether's total exposure to U.S. Treasuries surpassed $127 billion, including direct holdings and indirect investments [1].
  • Q3 2025: The attestation report for September 30, 2025, showed total reserves of $181.2 billion against liabilities of $174.4 billion, reflecting an excess reserve of $6.8 billion [1].

Critics continue to advocate for full independent audits rather than attestations, seeking even greater assurance of Tether's backing. Despite these calls, Tether's published reports demonstrate consistent excess reserves and a significant allocation to highly liquid assets like U.S. Treasuries.

Here's a summary of Tether's financial position based on BDO attestations:

Metric Q1 2025 Q3 2025
Total Assets $149.28B $181.2B
Total Liabilities $143.68B $174.4B
Excess Reserves $5.6B $6.8B

Note: Q2 data primarily focused on profit and Treasury exposure, not direct asset/liability figures in the same format.

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