Tether reported record growth in both users and reserves for its USDT stablecoin during the fourth quarter of 2025, even as the broader crypto market experienced one of its sharpest downturns in recent years. According to Tether’s quarterly market report, USDT market capitalization rose by $12.4 billion during the quarter to a new high of $187.3 billion, extending its lead as the world’s largest stablecoin.
The company estimated that USDT added 35.2 million new users in Q4, bringing its global user base to approximately 534.5 million. This marked the eighth consecutive quarter in which USDT added more than 30 million users, underscoring continued adoption despite heightened volatility following the October market liquidation event.
User Adoption Outpaces Broader Market
On-chain data showed continued expansion in wallet usage, with the number of on-chain USDT holders increasing by 14.7 million to 139.1 million during the quarter. USDT wallets accounted for roughly 70.7% of all stablecoin wallets, reinforcing its dominant position in the sector. Tether also estimated that more than 100 million users hold USDT on centralized platforms, highlighting the token’s role as a liquidity and settlement tool beyond decentralized networks.
Monthly active on-chain users averaged a record 24.8 million during the quarter, reflecting sustained transactional demand. Tether attributed this growth to USDT’s utility across payments, remittances, and value storage, particularly in regions where access to traditional banking remains limited or where local currencies face volatility.
Reserves Expand amid Institutional Focus
Tether’s total reserves grew by $11.7 billion in the fourth quarter to $192.9 billion, strengthening the balance sheet behind USDT issuance. Reserve assets included $141.6 billion in US Treasuries, 96,184 Bitcoin, and 127.5 metric tons of gold, reflecting a diversified reserve strategy that blends traditional financial instruments with select digital and commodity exposure.
The expansion came despite a challenging macro backdrop. Crypto markets suffered a major liquidation cascade in October 2025, followed by elevated volatility through year-end. Bitcoin prices declined sharply and were trading near $71,200 by early February 2026, marking the lowest levels since October 2024. Over the same period, the total crypto market capitalization fell by more than one-third.
Competitive and Macro Context
Against this backdrop, USDT’s growth contrasted with declines seen among competing stablecoins. Tether reported that while USDT grew approximately 3.5% following the October liquidation event, the second- and third-largest stablecoins saw declines of 2.6% and 57%, respectively. The divergence highlights a consolidation trend within the stablecoin market, with liquidity gravitating toward issuers perceived as systemically important.
Separately, reports this week indicated that Tether has revised its potential fundraising plans, with advisers discussing a raise of around $5 billion, down from earlier figures. While no formal transaction has been announced, the adjustment reflects a more cautious capital environment as regulatory scrutiny and macro uncertainty continue to shape the digital asset sector.
