Stablecoin issuer Tether (USDT) announced on Friday its first-quarter 2026 earnings report, reporting a net profit of $1.04 billion.
This report, prepared by the global independent accounting firm BDO, shows that the company’s excess reserves increased to a record $8.23 billion in the first quarter, supported by continued profitability, though at a slower pace than the previous year. $1 billion in annual profit was recorded last year [original text missing, cannot be translated]. However, this attestation provides only a snapshot of reserves as of March 31 and does not constitute a full financial audit.
Tether stated that its reserves remain heavily concentrated in short-term, high-quality liquid instruments, with approximately $141 billion in U.S. Treasury exposure as of March 31. This makes it one of the top 20 holders of U.S. Treasuries, alongside sovereign nations such as Saudi Arabia and South Korea. China is the world’s largest holder of U.S. Treasuries, underscoring its growing role in shaping demand for the U.S. dollar.
The report shows that, in addition to government bonds, the reserves include a limited number of other asset classes, such as approximately $20 billion in gold and approximately $7 billion in Bitcoin. “This diversified allocation reflects a balance among liquidity, resilience, and investment in macro assets that perform well under stress,” the company said.
As of March 31, Tether's total assets exceeded $191.7 billion, with total liabilities at $183.5 billion, of which $183.4 billion relates to issued digital tokens, reflecting an excess liability of $8.2 billion.
Tether notes that its own investments held through Tether Investments are not included in the reserves backing issued tokens, but are funded by the company’s surplus capital and profits, and are completely segregated from the USDT reserves.
Tether CEO Paolo Ardoino said: “Our responsibility is to ensure that USDT operates without compromise.” Statement “This means building a system that functions the same way under any market conditions, not just during periods of market stability.”
The company stated that the circulating supply of USDT remained largely stable in the first quarter, with total liabilities associated with the token amounting to approximately $183 billion as of March 31.
“As of April, the circulating supply of USDT remained at or near all-time highs, increasing by over $5 billion, reflecting sustained demand in the second quarter,” Ardoino added.