Tether posts $1B in Q1 operating profit, $5.6 billion excess in reserves

Tether, the company behind the world’s largest stablecoin by market capitalization, has released its financials for the first quarter of 2025, disclosing nearly $120 billion in exposure to US Treasurys and over $1 billion in operating profit.

According to Tether’s Q1 2025 financial report, the company’s assets include $98.5 billion in direct US Treasury bills, along with over $23 billion in additional exposure through repurchase agreements and other cash-equivalent assets.

Tether posts $1B in Q1 operating profit, $5.6 billion excess in reserves
Excerpt from Tether’s Q1 2025 financial report. Source: Tether

According to the announcement, Tether holds $5.6 billion in excess of reserves for its USDt (USDT) stablecoin, down from $7.1 billion in excess from the last quarter of 2024. The stablecoin has a market capitalization of $149 billion as of May 1.

“Circulating supply of USDT grew by approximately $7 billion in Q1, with a 46 million increase in user wallets,” it said.

The company’s excess capital continues to fund strategic investments, with more than $2 billion allocated in renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure. 

The stablecoin market is broadly dominated by tokens pegged to the US dollar, with USDT and Circle’s USDC holding a combined 87% share. According to the US Treasury’s Q1 2025 report, the market cap for dollar-backed stablecoins is poised to reach $2 trillion by 2028.

European Union officials have recently raised concerns about the risks of overreliance on dollar-pegged stablecoins. According to the Bank of Italy, disruptions in the stablecoins market or the underlying bonds could have “repercussions for other parts of the global financial system.”

Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight

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Crypto ‘decoupling’ story ends as stocks follow Bitcoin’s rally

Key takeaways:

  • Despite weak US manufacturing data, Federal Reserve liquidity plans and strong corporate earnings keep equities and crypto afloat.

  • The total crypto market capitalization rose 8.5% since March.

Cryptocurrency traders have frequently zoomed in on the need for crypto to show a clear “decoupling” from the stock market, and over the past 10 days, the intraday movements of Bitcoin (BTC) and major altcoins have closely tracked those of the S&P 500, even as trade war developments have dominated market sentiment.

Crypto ‘decoupling’ story ends as stocks follow Bitcoin’s rally
S&P 500 futures (left) vs. Total crypto cap, USD (right). Source: TradingView/Cointelegraph

A decoupling would validate digital assets as an independent class and address growing concerns about a potential global economic recession. This ongoing correlation has led market participants to question whether the cryptocurrency market is destined to follow the stock market’s lead indefinitely, and what conditions would be necessary for a genuine decoupling to occur.

Stock market shows strength despite trade tensions

The S&P 500 reached its peak on Feb. 19 and has since struggled to reclaim the 5,800 level, a support that had held for four months. Despite persistent pressure from US trade disputes with Canada and Mexico, as well as the imposition of new tariffs affecting nearly every major economic region, equities have demonstrated notable resilience.

Chinese state media recently reported that the United States has quietly initiated trade negotiations. Although China officially maintains a 125% retaliatory tariff on US imports, it has granted waivers for sectors such as ethane, semiconductors, and certain pharmaceuticals. The United States, in turn, has partially exempted automakers from new tariffs. These actions suggest that both sides are gradually making concessions.

There is a reasonable possibility that the S&P 500 established a bottom at 4,835 on April 7, with further gains from the current 5,635 level remaining plausible. The stock market has responded positively to robust first-quarter earnings, as companies adapt to tariffs by relocating production outside China or expanding operations within the United States.

For instance, Microsoft reported a 13.2% year-over-year increase in revenue, with higher margins and strong demand for artificial intelligence. Meta also delivered earnings and revenue that exceeded market expectations on April 30. These results have alleviated concerns about a potential AI bubble or the risk that the trade war could force companies to reduce investment.

The market’s focus shifts to the Federal Reserve

Rather than concentrating on the recent decline in US PMI manufacturing data-which reached a five-month low in April, market participants are closely monitoring the Federal Reserve’s next policy moves. Following a year of balance sheet reduction, the Fed is now considering asset purchases to help ease selling pressure.

An increase in liquidity is typically favorable for risk-oriented assets. Therefore, even if a full decoupling does not occur, cryptocurrencies could still benefit from a more supportive macroeconomic environment.

Crypto ‘decoupling’ story ends as stocks follow Bitcoin’s rally
S&P 500 futures (left) vs. Total crypto cap, USD (right). Source: TradingView/Cointelegraph

Despite the short-term correlation, the cryptocurrency market has outperformed equities in recent months. Since March, the total crypto market capitalization has risen by 8.5%, while the S&P 500 has declined by 5.3%. Over a six-month period, this divergence becomes even more pronounced: the total crypto market cap is up 29%, while the S&P 500 is down 2%. It is therefore inaccurate to suggest that these markets move in perfect synchrony, particularly when viewed over longer timeframes.

Related: Bitcoin to $1M by 2029 fueled by ETF and gov’t demand — Bitwise exec

It is still premature to declare a definitive bottom for the S&P 500 or to conclude that the trade war has been resolved. An economic recession would likely have negative implications for both markets. However, the current strength in equities indicates reduced risk aversion among investors. For the time being, the elevated correlation between cryptocurrencies and stocks may represent the most favorable scenario.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

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The crypto trends Animoca Brands is eyeing this year — Token2049

Animoca Brands is looking at trends in real-world tokenized assets, AI projects, and the gaming sector to invest in and develop, according to Omar Elissar, the company’s managing director for the Middle East and the head of Global Strategic Partnerships.

In an interview with Cointelegraph’s Sam Bourgi at Token2049, Elissar said that stablecoins, real-world asset tokenization, the intersection between AI and crypto, alternative use cases such as decentralized science, and Web3 gaming were all niches the company is exploring.

Gaming is “part of our DNA,” the executive said before reflecting on the current state of the Web3 gaming industry:

“It’s gone quiet for some time in terms of less PR, but there’s been building in the background. Recently, there have been a few games that have come out that have been truly fun to play, which I think has been one of the main negative sentiments about Web3 gaming.”

Animoca Brands is one of the foremost crypto-native venture capital firms in the space and can serve as a barometer of hot or emerging market trends for crypto investors.

Related: VC Roundup: Funding surge targets confidentiality, tokenization and Web3 infrastructure

Animoca Brands inks stablecoin, blockchain deals

In February 2025, Animoca Brands, Standard Chartered Bank, and Hong Kong Telecommunications (HKT) signed a deal to develop a Hong Kong dollar stablecoin that will be overcollateralized and pegged to the Hong Kong dollar at a 1:1 ratio.

The stablecoin must first be approved by the Hong Kong Monetary Authority (HKMA) before it begins trading. Hong Kong’s financial authorities are currently working on establishing comprehensive stablecoin regulations.

On March 27, Animoca Brands inked a deal with Soneium, a layer-1 blockchain network developed by Japanese tech company Sony, to develop a digital identification system that features pictures of anime characters that can be assigned to an onchain user to signify identity.

Venture Capital, Web3, Token2049
Animoca releases financial assets and token reserves for 2024 as part of its overall financial report for the company’s 2024 fiscal year. Source: Animoca Brands

Animoca reported that it recorded 12% year-over-year growth during the 2024 fiscal year in “bookings” — a figure that accounts for the sum of all revenue plus revenue that has been booked but not yet received by the company.

Magazine: Crypto ‘more taboo than OnlyFans,’ says Violetta Zironi, who sold song for 1 BTC

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Amazon’s upgraded digital assistant powered by generative AI, Alexa+, has rolled out to over 100,000 users, CEO Andy Jassy said on the company’s earnings call Thursday. While that’s a far cry from the 600 million Alexa devices out there, the company is making some progress on the rollout of Alexa+, which was first unveiled in […]
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Apple CEO Tim Cook offered the company’s first comments on the impact of President Trump’s tariffs during Thursday’s second-quarter earnings call with investors. While the iPhone maker saw only “limited impact” from tariffs in the March quarter, Cook said Apple couldn’t forecast what that would mean for the coming quarter. However, if things remained the […]
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Three years ago, a group of TikTokers joined NBCUniversal’s new initiative aimed at transforming social media influencers into the next generation of TV show creators.  Now, four of these creators are set to launch their original series on Peacock.  According to The Hollywood Reporter, the shows set to premiere are “The Warehouse Phase,” developed by […]
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A previously unreported document distributed by senior US State Department official Darren Beattie reveals a sweeping effort to uncover all communications between the staff of a small government office focused on online disinformation and a lengthy list of public and private figures—many of whom are longtime targets of the political right. 

The document, originally shared in person with roughly a dozen State Department employees in early March, requested staff emails and other records with or about a host of individuals and organizations that track or write about foreign disinformation—including Atlantic journalist Anne Applebaum, former US cybersecurity official Christopher Krebs, and the Stanford Internet Observatory—or have criticized President Donald Trump and his allies, such as the conservative anti-Trump commentator Bill Kristol. 

The document also seeks all staff communications that merely reference Trump or people in his orbit, like Alex Jones, Glenn Greenwald, and Robert F. Kennedy Jr. In addition, it directs a search of communications for a long list of keywords, including “Pepe the Frog,” “incel,” “q-anon,” “Black Lives Matter,” “great replacement theory,” “far-right,” and “infodemic.”

For several people who received or saw the document, the broad requests for unredacted information felt like a “witch hunt,” one official says—one that could put the privacy and security of numerous individuals and organizations at risk. 

Beattie, whom Trump appointed in February to be the acting undersecretary for public diplomacy, told State Department officials that his goal in seeking these records was a “Twitter files”-like release of internal State Department documents “to rebuild trust with the American public,” according to a State Department employee who heard the remarks. (Beattie was referring to the internal Twitter documents that were released after Elon Musk bought the platform, in an attempt to prove that the company had previously silenced conservatives. While the effort provided more detail on the challenges and mistakes Twitter had already admitted to, it failed to produce a smoking gun.)

“What would be the innocent reason for doing that?” Bill Kristol

The document, dated March 11, 2025, focuses specifically on records and communications from the Counter Foreign Information Manipulation and Interference (R/FIMI) Hub, a small office in the State Department’s Office of Public Diplomacy that tracked and countered foreign disinformation campaigns; it was created after the Global Engagement Center (GEC), which had the same mission, shut down at the end of 2024. MIT Technology Review broke the news earlier this month that R/FIMI would be shuttered. 

Some R/FIMI staff were at the meeting where the document was initially shared, as were State Department lawyers and staff from the department’s Bureau of Administration, who are responsible for conducting searches to fulfill public records requests. 

Also included among the nearly 60 individuals and organizations caught up in Beattie’s information dragnet are Bill Gates; the open-source journalism outlet Bellingcat; former FBI special agent Clint Watts; Nancy Faeser, the German interior minister; Daniel Fried, a career State Department official and former US ambassador to Poland; Renée DiResta, an expert in online disinformation who led research at Stanford Internet Observatory; and Nina Jankowicz, a disinformation researcher who briefly led the Disinformation Governance Board at the US Department of Homeland Security.

Have more information on this story or a tip for something else that we should report? Using a non-work device, reach the reporter on Signal at eileenguo.15 or tips@technologyreview.com.

When told of their inclusion in the records request, multiple people expressed alarm that such a list exists at all in an American institution. “When I was in government I’d never done anything like that,” Kristol, a former chief of staff to Vice President Dan Quayle, says. “What would be the innocent reason for doing that?”

Fried echoes this sentiment. “I spent 40 years in the State Department, and you didn’t collect names or demand email records,” says Fried. “I’ve never heard of such a thing”—at least not in the American context, he clarifies. It did remind him of Eastern European “Communist Party minder[s] watching over the untrusted bureaucracy.” 

He adds: “It also approaches the compilation of an enemies list.” 

Targeting the “censorship industrial complex”

Both GEC and R/FIMI, its pared-down successor office, focused on tracking and countering foreign disinformation efforts from Russia, China, and Iran, among others, but GEC was frequently accused—and was even sued—by conservative critics who claimed that it enabled censorship of conservative Americans’ views. A judge threw out one of those claims against GEC in 2022 (while finding that other parts of the Biden administration did exert undue pressure on tech platforms). 

Beattie has also personally promoted these views. Before joining the State Department, he started Revolver News, a website that espouses far-right talking points that often gain traction in certain conservative circles. Among the ideas promoted in Revolver News is that GEC was part of a “censorship industrial complex” aimed at suppressing American conservative voices, even though GEC’s mission was foreign disinformation. This idea has taken hold more broadly; the House Foreign Affairs Committee held a hearing titled the “Censorship-Industrial Complex: The Need for First Amendment Safeguards at the State Department,” on April 1 focused on GEC. 

Most people on the list appear to have focused at some point on tracking or challenging disinformation broadly, or on countering specific false claims, including those related to the 2020 election. A few of the individuals appear primarily to be critics of Trump, Beattie, or others in the right-wing media ecosystem. Many have been the subject of Trump’s public grievances for years. (Trump called Krebs, for instance, a “significant bad-faith actor” in an executive order targeting him earlier this month.)   

Beattie specifically asked for “all documents, emails, correspondence, or other records of communications amongst/between employees, contractors, subcontractors or consultants at the GEC or R/FIMI” since 2017 with all the named individuals, as well as communications that merely referenced them. He sought communications that referenced any of the listed organizations.  

Finally, he sought a list of additional unredacted agency records—including all GEC grants and contracts, as well as subgrants, which are particularly sensitive due to the risks of retaliation to subgrantees, who often work in local journalism, fact-checking, or pro-democracy organizations under repressive regimes. It also asked for “all documents mentioning” the Election Integrity Partnership, a research collaboration between academics and tech companies that has been a target of right-wing criticism. 

Several State Department staffers call the records requests “unusual” and “improper” in their scope. MIT Technology Review spoke to three people who had personally seen the document, as well as two others who were aware of it; we agreed to allow them to speak anonymously due to their fears of retaliation. 

While they acknowledge that previous political appointees have, on occasion, made information requests through the records management system, Beattie’s request was something wholly different. 

Never had “an incoming political appointee” sought to “search through seven years’ worth of all staff emails to see whether anything negative had been said about his friends,” says one staffer. 

Another staffer calls it a “pet project” for Beattie. 

Selective transparency

Beattie delivered the request, which he framed as a “transparency” initiative, to the State Department officials in a conference room at its Washington, D.C., headquarters on a Tuesday afternoon in early March, in the form of an 11-page packet titled, “SO [Senior Official] Beattie Inquiry for GEC/R/FIMI Records.” The documents were printed out, rather than emailed.

Labeled “sensitive but unclassified,” the document lays out Beattie’s requests in 12 separate, but sometimes repetitive, bullet points. In total, he sought communications about 16 organizations, including Harvard’s Berkman Klein Center and the US Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA), as well as with and about 39 individuals. 

Notably, this includes several journalists: In addition to Bellingcat and Applebaum, the document also asks for communications with NBC News senior reporter Brandy Zadrozny. 

Press-freedom advocates expressed alarm about the inclusion of journalists on the list, as well as the possibility of their communications being released to the public, which goes “considerably well beyond the scope of what … leak investigations in the past have typically focused on,” says Grayson Clary, a staff attorney at the Reporters Committee for Freedom of the Press. Rather, the effort seems like “a tactic designed to … make it much harder for journalists to strike up those source relationships in the first instance.”

Beattie also requested a search for communications that mentioned Trump and more than a dozen other prominent right-leaning figures. In addition to Jones, Greenwald, and “RFK Jr.,” the list includes “Don Jr.,” Elon Musk, Joe Rogan, Charlie Kirk, Marine Le Pen, “Bolsonaro” (which could cover either Jair Bolsonaro, the former Brazilian president, or his son Eduardo, who is seeking political asylum in the US), and Beattie himself. It also asked for a search for 32 right-wing buzzwords related to abortion, immigration, election denial, and January 6, suggesting a determined effort to find State Department staff who even just discussed such matters. 

(Staffers say they doubt that Beattie will find much, unless, one says, it’s “previous [FOIA] queries from people like Beattie” or discussions about “some Russian or PRC [Chinese] narrative that includes some of this stuff.”)

Multiple sources say State Department employees raised alarms internally about the records requests. They worried about the sensitivity and impropriety of the broad scope of the information requested, particularly because records would be unredacted, as well as about how the search would be conducted: through the eRecords file management system, which makes it easy for administrative staff to search through and retrieve State Department employees’ emails, typically in response to FOIA requests. 

This felt, they say, like a powerful misuse of the public records system—or as Jankowicz, the disinformation researcher and former DHS official, put it, “weaponizing the access [Beattie] has to internal communications in order to upend people’s lives.”

“It stank to high heaven,” one staffer says. “This could be used for retaliation. This could be used for any kind of improper purposes, and our oversight committees should be informed of this.”

Another employee expressed concerns about the request for information on the agency’s subgrantees—who were often on the ground in repressive countries and whose information was closely guarded and not shared digitally, unlike the public lists of contractors and grantees typically available on websites like Grants.gov or USAspending.gov. “Making it known that [they] took money from the United States would put a target on them,” this individual explains. “We kept that information very secure. We wouldn’t even email subgrant names back and forth.”

Several people familiar with the matter say that by early April, Beattie had received many of the documents he’d requested, retrieved through eRecords, as well as a list of grantees. One source says the more sensitive list of subgrantees was not shared.  

Neither the State Department nor Beattie responded to requests for comment. A CISA spokesperson emailed, “We do not comment on intergovernmental documents and would refer you back to the State Department.” We reached out to all individuals whose communications were requested and are named here; many declined to comment on the record.

A “chilling effect”

Five weeks after Beattie made his requests for information, the State Department shut down R/FIMI. 

An hour after staff members were informed, US Secretary of State Marco Rubio published a blog post announcing the news on the Federalist, one of the outlets that sued the GEC over allegations of censorship. He then discussed in an interview with the influential right-wing Internet personality Mike Benz plans for Beattie to lead a “transparency effort.”  

“What we have to do now—and Darren will be big involved in that as well—is sort of document what happened … because I think people who were harmed deserve to know that, and be able to prove that they were harmed,” Rubio told Benz.

This is what Beattie—and Benz—have long called for. Many of the names and keywords he included in his request reflect conspiracy theories and grievances promoted by Revolver News—which Beattie founded after being fired from his job as a speechwriter during the first Trump administration when CNN reported that he had spoken at a conference with white nationalists. 

Ultimately, the State Department staffers say they fear that a selective disclosure of documents, taken out of context, could be distorted to fit any kind of narrative Beattie, Rubio, or others create. 

Weaponizing any speech they consider to be critical by deeming it disinformation is not only ironic, says Jankowicz—it will also have “chilling effects” on anyone who conducts disinformation research, and it will result in “less oversight and transparency over tech platforms, over adversarial activities, over, frankly, people who are legitimately trying to disenfranchise US voters.” 

That, she warns, “is something we should all be alarmed about.”

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This is today’s edition of The Download, our weekday newsletter that provides a daily dose of what’s going on in the world of technology.

A long-abandoned US nuclear technology is making a comeback in China

China has once again beat everyone else to a clean energy milestone—its new nuclear reactor is reportedly one of the first to use thorium instead of uranium as a fuel and the first of its kind that can be refueled while it’s running.

It’s an interesting (if decidedly experimental) development out of a country that’s edging toward becoming the world leader in nuclear energy. China has now surpassed France in terms of generation, though not capacity; it still lags behind the US in both categories. But one recurring theme in media coverage about the reactor struck me, because it’s so familiar: This technology was invented decades ago, and then abandoned.

And this one research reactor in China running with an alternative fuel says a lot about this moment for nuclear energy technology: Many groups are looking into the past for technologies, with a new appetite for building them. Read the full story.

—Casey Crownhart

This article is from The Spark, MIT Technology Review’s weekly climate newsletter. To receive it in your inbox every Wednesday, sign up here.

Love or immortality: A short story

In this short fiction story from the latest edition of our print magazine, writer Alexandra Chang imagines what might happen to a couple’s relationship when one person wants to live life to the fullest, while another wants to live forever. Read the full story and if you aren’t already a subscriber, sign up now to get the next edition of the print magazine.

The must-reads

I’ve combed the internet to find you today’s most fun/important/scary/fascinating stories about technology.

1 RFK Jr wants to change how new vaccines are tested
Medical experts are concerned the shift will curtail access to the jabs. (WP $)
+ He has also overseen the closure of a long-running diabetes study. (New Yorker $)
+ America’s public health crisis is worsening. (The Atlantic $)

2 Sam Altman’s biometric World project has launched in the US
It’s been dogged by privacy and security concerns in other countries. (FT $)
+ It bills its Orb devices as powerful identity-verification tools. (Bloomberg $)
+ In fact, it’s partnering with Match Group to verify users are who they say they are. (Wired $)
+ How the company recruited its first half a million test users. (MIT Technology Review)

3 Tesla was reportedly looking for a new CEO 
A rough few months allegedly pushed the firm to search for Elon Musk’s successor. (WSJ $)
+ But the company was quick to deny the report. (The Guardian)
+ Meanwhile, Musk has insisted he’ll continue working on DOGE. (Semafor)

4 A judge has ordered Apple to loosen its grip on the App Store
The ruling spells the end of a five-year antitrust case. (NYT $)
+ As a result, Fortnite will return to the US iOS App Store. (Variety $)

5 Climate change is worsening our eye health
Common eye disorders are linked with heat and higher UV exposure. (Knowable Magazine)

6 Instagram’s AI chatbots are claiming to be licensed therapists
And will happily make up qualifications. (404 Media)
+ But the first trial of generative AI therapy shows it might help with depression. (MIT Technology Review)

7 US drug overdoses are finally declining
But the Trump administration threatens to undo that progress. (Vox)
+ How the federal government is tracking changes in the supply of street drugs. (MIT Technology Review)

8 Young Brazilians dream of becoming social media stars
But TikTok is being investigated for monetizing them when they don’t have the right to work. (Rest of World)
+ Meet the wannabe kidfluencers struggling for stardom. (MIT Technology Review)

9 Duolingo has launched 148 AI-powered language courses
Just days after announcing its plans to replace human workers. (TechCrunch)

10 The BBC created a deepfake of Agatha Christie
49 years after her death, the crime author is teaching online writing classes. (The Verge)
+ An AI startup made a hyperrealistic deepfake of me that’s so good it’s scary. (MIT Technology Review)

Quote of the day

“The sacrifice to research is immense.” 

—Gigi Kwik Gronvall, a senior scholar at the Johns Hopkins Center for Health Security, explains the consequences of the Trump administration’s decision to force a health department focused on studying deadly infectious diseases to cease operating to Wired.

One more thing

The flawed logic of rushing out extreme climate solutions

Early in 2022, entrepreneur Luke Iseman says, he released a pair of sulfur dioxide–filled weather balloons from Mexico’s Baja California peninsula, in the hope that they’d burst miles above Earth.

It was a trivial act in itself, effectively a tiny, DIY act of solar geoengineering, the controversial proposal that the world could counteract climate change by releasing particles that reflect more sunlight back into space.

Entrepreneurs like Iseman invoke the stark dangers of climate change to explain why they do what they do—even if they don’t know how effective their interventions are. But experts say that urgency doesn’t create a social license to ignore the underlying dangers or leapfrog the scientific process. Read the full story.

—James Temple

We can still have nice things

A place for comfort, fun and distraction to brighten up your day. (Got any ideas? Drop me a line or skeet ’em at me.)

+ The oldest woman in the world, 115-year old Ethel May Caterham, is the last known surviving subject of Edward VII.
+ Great news for axolotl lovers: a captive-bred group of the little amphibians can thrive in the wild.
+ Thor Pedersen spent almost a decade travelling the world without flying.
+ The fifth annual European Gull Screeching Championship did not disappoint.

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