Tether’s dollar-pegged stablecoin USDt expanded to a record $187.3 billion market capitalization in the fourth quarter of 2025, even as the broader crypto market slid following October’s liquidation cascade.
According to its latest quarterly report, the USDt (USDT) market cap grew by $12.4 billion in Q4.
Data shows that USDt has been widening its dominance while competitors retreated.
After the major liquidation event on Oct. 10, the market cap of Circle’s USDC (USDC), the second-largest stablecoin, fluctuated throughout the rest of Q4 but closed the period largely unchanged. Ethena’s synthetic dollar USDe, ranked third among stablecoins at CoinMarketCap, dropped by 57%.
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USDt onchain activity hits records
Onchain activity also reached new highs. The average number of monthly active USDt wallets climbed to 24.8 million, representing almost 70% of all stablecoin-holding wallets. Quarterly transfer volume surged to $4.4 trillion, while the number of onchain transfers rose to 2.2 billion.
Furthermore, 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 biggest holders globally and ahead of several sovereign nations.
The data also points to a relatively stable user base. About two-thirds of USDt supply is held in savings wallets and centralized exchanges, while the remaining third supports 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.
Related: Tether CEO denies the company ever planned $20B raise
Tether launches GENIUS Act–compliant stablecoin
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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