Tether's Volatile Reserves Exposed: Regulatory Gaps Widen
Tether, the issuer of the widely-used USDT stablecoin, has $181.2 billion in total reserves as of September 30, 2025. The company's reserve composition is diversified, but it also carries market exposure due to volatile holdings. Tether holds $12.9 billion in gold and $9.8 billion in Bitcoin, which are valued at fair value. A 25% drop in these riskier holdings would wipe out the company's $8.2 billion capital buffer.
The company's quarterly attestations, prepared by BDO, do not provide the same level of rigor as a full audit performed by a CPA firm in accordance with GAAP standards. This lack of a full audit leaves questions about the exact location of all cash deposits.
Tether lacks the licenses required to operate within the US or the EU under MiCA rules. The regulatory environment shifted after the US GENIUS Act passed in July 2025, which requires companies to maintain transparency that Tether has historically avoided.