USDT, issued by Tether, posted strong growth in the fourth quarter of 2025 despite a sharp crypto market downturn in October. The stablecoin reached a record market capitalization of $187.3 billion, rising $12.4 billion during the quarter, according to Tether’s quarterly report released Wednesday.
The gains came as the broader crypto market lost more than one-third of its value between October 10, 2025, and February 1, 2026, following a major liquidation cascade. At the same time, Tether reported rapid user growth across both on-chain and centralized platforms. The company estimated 35.2 million new users joined during Q4, lifting total global users to 534.5 million.
This marked the eighth straight quarter in which USDT added more than 30 million users. While risk assets struggled, USDT continued to attract capital and usage. Since October 10, USDT supply grew 3.5%, while the second and third largest stablecoins declined by 2.6% and 57%, respectively.
Does USDT’s steady expansion signal a structural shift in how crypto users manage risk during market stress?
On-chain metrics also reached record levels during the quarter. The number of on-chain USDT holders rose by 14.7 million to 139.1 million addresses. USDT wallets represented 70.7% of all stablecoin wallets across public blockchains.
Monthly active on-chain users averaged 24.8 million during Q4, the highest level on record. This figure accounted for nearly 70% of all stablecoin-holding wallets globally. Tether also estimated that more than 100 million users hold USDT on centralized platforms.
Transaction activity accelerated alongside wallet growth. Quarterly on-chain transfer volume climbed to $4.4 trillion, while total transfers reached 2.2 billion. Roughly two-thirds of the USDT supply remained held in savings wallets and centralized exchanges during the period.
The remaining third supported payments, remittances, and decentralized finance activity. This distribution suggested a relatively stable user base despite heightened volatility. USDT usage continued to span both long-term holdings and transactional demand.
Tether’s total reserves increased by $11.7 billion during Q4, reaching $192.9 billion. Holdings included 96,184 bitcoin, 127.5 metric tons of gold, and $141.6 billion in U.S. Treasuries. The company reported net equity of $6.3 billion at the end of the quarter.
Its U.S. Treasury exposure placed Tether among the largest holders globally, ahead of several sovereign nations. Meanwhile, data showed widening dominance as competitors retreated. Circle’s USDC, issued by Circle, ended Q4 largely unchanged after volatility, while Ethena’s USDe dropped 57%.
USDT also remained the most used stablecoin in illicit transfers. Research firm Bitrace reported that $649 billion in stablecoins flowed through high-risk addresses in 2024. Tron-based USDT accounted for more than 70% of that activity.
In response, Tether expanded monitoring and enforcement efforts. The company launched joint initiatives with TRM Labs and Tron to track and freeze illicit funds. Tether also revised fundraising plans, with advisers now discussing a $5 billion raise, down from earlier $20 billion targets.
In January, Tether introduced USAt, a U.S.-compliant dollar stablecoin issued by Anchorage Digital Bank. USAt launched on Ethereum with an initial $10 million supply under the GENIUS Act framework. Separately, Tether partnered with Opera to integrate USDT and Tether Gold into Opera’s MiniPay wallet for emerging markets.
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USDT market cap growth continued in Q4 2025 despite a sharp crypto downturn. Tether added users, expanded reserves, and increased on-chain activity while rival stablecoins stalled or declined. The data shows USDT strengthening its role as the primary liquidity and settlement layer during periods of market stress.