Tether reported a total exposure of nearly $120 billion in US treasuries by the end of Q1 2025, with $99 billion in direct holdings, marking a significant shift in its reserve strategy. This transformation has positioned Tether as a major player in the US Treasury market, generating over $1 billion in operating profit from traditional investments. Additionally, Tether's operations under El Salvador's regulatory framework highlight a strategic move to navigate global regulations, attracting major industry players while avoiding stricter regimes.