Tether, the entity behind the most valuable stablecoin, has announced a net profit of $1.04 billion for the first quarter, accompanied by a significant increase in its reserve buffer to $8.23 billion. The company's reserve buffer has seen substantial growth, rising from $6.3 billion at the end of 2025.
This surge in reserves is attributed to the company's sustained profitability and a strategic focus on short-term, high-quality liquid assets. As of March 31, the total value of USDT in circulation remained steady, with the firm's total liabilities amounting to approximately $183 billion and total assets nearing $192 billion. The release of this report coincides with an escalating global demand for stablecoins, which are increasingly being utilized for international payments beyond their traditional role in cryptocurrency trading.
Recently, Visa expanded its stablecoin settlement pilot to include nine blockchains, underscoring the growing importance of stablecoins in the financial landscape. Tether's USDT is currently the third-largest cryptocurrency by market capitalization, with a value of nearly $190 billion, trailing behind bitcoin and ether. The majority of Tether's reserves are invested in U.S.
government-backed securities and short-term liquidity facilities, with the company holding a significant position as the 17th-largest holder of U.S. Treasuries worldwide. Over the past two years, Tether has emerged as a top 10 buyer of U.S. Treasuries, surpassing several countries including Taiwan, Israel, and the UAE.
Additionally, the company's holdings include approximately $20 billion in physical gold and around $7 billion in bitcoin reserves.