Tether, the leading stablecoin issuer by market capitalization, has announced a first-quarter net profit of $1.04 billion, accompanied by a record increase in excess reserves to $8.23 billion. Although year-earlier and fourth-quarter figures were not provided, the company reported a substantial net profit exceeding $10 billion for the entirety of 2025. The circulating supply of the dollar-pegged USDT remained stable, with total token-related liabilities amounting to approximately $183 billion as of March 31, according to the company's quarterly report.
Total assets were reported to be just under $192 billion. The release of this report coincides with a surge in global demand for stablecoins, driven by their expanding use in international payments beyond crypto trading.
Recently, Visa announced the expansion of its stablecoin settlement pilot to nine blockchains. The company's excess reserves, which have grown from $6.3 billion at the end of 2025, are attributed to sustained profitability and a reserve base comprising short-duration, high-quality liquid instruments.
As the third-largest cryptocurrency, USDT boasts a market capitalization of nearly $190 billion, trailing behind bitcoin and ether. The majority of Tether's reserves are invested in U.S.
government-backed instruments and short-term liquidity facilities, with the firm being the 17th-largest holder of U.S. Treasuries globally.
Over the past two years, Tether has emerged as a top 10 buyer of U.S. Treasuries, surpassing several countries. Additionally, the company holds approximately $20 billion in physical gold and $7 billion in bitcoin reserves.