Tether posted a $1.04 billion net profit in Q1 and said its excess reserve buffer climbed to a record $8.23 billion, the stablecoin issuer disclosed in its latest quarterly report.
Key figures
- Q1 net profit: $1.04 billion.
- Excess reserves: $8.23 billion (up from $6.3 billion at the end of 2025).
- Total token-related liabilities (USDT in circulation): about $183 billion as of March 31.
- Total assets: just under $192 billion.
- 2025 full-year profit: more than $10 billion (company-reported).
- USDT market capitalization: just under $190 billion, making it the third-largest crypto by market cap behind Bitcoin and Ether.
- Physical gold holdings: roughly $20 billion.
- Bitcoin reserves: approximately $7 billion.
What Tether says about reserves
Tether attributed the rise in excess reserves to “continued profitability and a reserve base concentrated in short-duration, high-quality liquid instruments.” The company said the bulk of its holdings are in U.S. government-backed instruments and short-term liquidity facilities. Tether also noted that it is the 17th-largest global holder of U.S. Treasuries and, over the past two years, has become a top-10 buyer—exceeding purchases by Taiwan, Israel and the UAE.
Why this matters now
The report arrives amid growing global demand for stablecoins beyond crypto trading—particularly for cross-border payments and settlements. Payments giant Visa this week expanded its stablecoin settlement pilot to nine blockchains, adding Base, Polygon, Canton Network, Arc and Tempo to existing support for Ethereum, Solana, Avalanche and Stellar—highlighting expanding infrastructure and institutional interest in tokenized dollars.
Bottom line
Tether’s quarterly results underline both the scale of USDT’s market footprint and the firm’s strategy of holding large, liquid reserves. With a substantial reserve buffer and continued profitability, Tether is positioning itself to meet rising use of stablecoins in broader payments rails—while continuing to attract scrutiny on its balance-sheet composition given its outsized role in crypto markets.
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