Tether, the entity behind the largest stablecoin by market capitalization, has announced a net profit of $1.04 billion for the first quarter, accompanied by a substantial increase in excess reserves to $8.23 billion. The company's quarterly report highlights the stability of its dollar-pegged USDT in circulation, with total token-related liabilities of approximately $183 billion as of March 31. Total assets stand at nearly $192 billion.
This development comes at a time when stablecoins are gaining traction for uses beyond crypto trading, such as international payments, with major players like Visa expanding their stablecoin settlement pilots. Tether's excess reserves have grown from $6.3 billion at the end of 2025, supported by the company's continued profitability and a focus on short-duration, high-quality liquid instruments. With a market capitalization of just under $190 billion, USDT ranks as the third-largest cryptocurrency. The majority of Tether's reserves are invested in U.S.
government-backed instruments and short-term liquidity facilities, positioning the company as the 17th-largest holder of U.S. Treasuries globally. Over the past two years, Tether has also become a significant buyer of U.S.
Treasuries, surpassing several countries. Additionally, the company holds roughly $20 billion in physical gold and approximately $7 billion in bitcoin reserves.