Tether operates a Treasury- and repo-heavy balance sheet, holding $181.2 billion in reserves against $174.5 billion in liabilities, generating over $10 billion in interest income so far in 2025.

Tether is behaving like a private dollar-linked central bank, managing reserves and policy-style levers, with no public mandate or backstop.

Tether intervenes in its own dollar system, freezing addresses and managing reserves like a fixed-income desk, earning seigniorage and using policy-style tools.

Tether has transformed into a broader financial infrastructure group with operating divisions, energy initiatives, and educational programs.

Tether is not a sovereign monetary authority, lacking public mandate, setting interest rates, or operating under a full financial audit.

Tether resembles a private, dollar-denominated central bank for crypto, expanding and contracting supply, earning interest income, and taking compliance actions.

Read more at Cointelegraph: Why Tether Looks More Like a Central Bank Than a Stablecoin Issuer