Tether, the issuer of the most widely held stablecoin, has announced a net profit of $1.04 billion for the first quarter, accompanied by a significant increase in excess reserves to $8.23 billion. The company's quarterly report did not include comparative figures from the previous year or the fourth quarter, but it did mention a net profit exceeding $10 billion for the entirety of 2025. As of March 31, the total token-related liabilities stood at approximately $183 billion, with the company's total assets nearing $192 billion.
The stablecoin's circulation remained stable, reflecting the growing demand for stablecoins in international payments beyond cryptocurrency trading. Recently, Visa expanded its stablecoin settlement pilot to include nine blockchains, underscoring the increasing adoption of stablecoins. Tether attributes its increased excess reserves to sustained profitability and a reserve base comprising short-duration, high-quality liquid instruments. With a market capitalization of nearly $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 become 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.