Tether expands investment portfolio, plans new hires

Tether, the issuer of the world’s largest stablecoin USDT, is expanding its investment portfolio and hiring more staff, according to a recent report by the Financial Times.

The company, registered in El Salvador and based in Switzerland, now holds around 140 investments, including stakes in a South American agricultural firm and Italian football club Juventus.

Tether has also increased its headcount to around 300 employees, with plans to add 150 more, primarily engineers.

CEO Paolo Ardoino discussed the company’s focus on developing peer-to-peer tools and a “freedom tech stack” at a recent conference in San Salvador, though critics question the coherence of its messaging.

Tether continues to face scrutiny over its reserves and regulatory compliance, with ongoing concerns about transparency and its ties to political figures.

The company has shifted its headquarters to El Salvador and aims to expand further into the US market amid regulatory challenges.

🔗 Source: Financial Times

🧠 Food for thought

Implications, context, and why it matters.

The profits behind Tether’s expansion draw praise and scrutiny

Tether reported net profits above $10 billion in 2025 from returns on reserve assets, according to its Q4 2025 attestation prepared by BDO (a global accounting and advisory firm) 1.
As of Dec. 31, 2025, reserve assets neared $193 billion against liabilities above $186 billion linked to issued tokens. Regulators and analysts often question the makeup and risks of these reserves 1.
The reserves lean on liquid holdings. They include $122 billion in U.S. Treasuries. The total rises above $141 billion when counting overnight reverse repurchase agreements (short-term loans typically collateralized by Treasuries). Reporting that cites the attestation also lists gold at $17.4 billion and bitcoin at $8.4 billion 2.
Tether says proprietary investments sit in a separate portfolio funded by excess capital and profits rather than USD₮ reserves. In Q4 2025 it put that portfolio above $20 billion 1.

Tether is moving toward a systemically important role

Growth in USD₮ has pulled Tether further into traditional markets, with knock-on effects beyond crypto.
Its U.S. Treasury position is large. Direct holdings total $122 billion, or more than $141 billion with overnight reverse repo instruments. That ranks it among the biggest non-government holders of U.S. government debt worldwide 3.
The attestation puts gold holdings at $17.4 billion, giving Tether a sizable stake in the metal 2.
Regulators face a trade-off. Stablecoin balances can pull money from bank deposits, which may leave less funding for lending in the real economy 3.