Tether, the leading stablecoin issuer by market capitalization, announced a net profit of $1.04 billion for the first quarter, accompanied by a record increase in excess reserves to $8.23 billion. The company did not release comparative figures for the previous year or the fourth quarter, but it did report a net profit exceeding $10 billion for the entirety of 2025. As of March 31, the total USDT in circulation remained stable, with token-related liabilities amounting to approximately $183 billion, while total assets stood at nearly $192 billion. The quarterly report was released amidst growing global demand for stablecoins, driven by their expanding use in international payments beyond cryptocurrency trading.
This week, Visa announced the expansion of its stablecoin settlement pilot to include nine blockchains. Tether's excess reserves, which increased from $6.3 billion at the end of 2025, are supported by the company's continued profitability and a reserve base comprising short-duration, high-quality liquid instruments. USDT ranks as the third-largest cryptocurrency, with a market capitalization of nearly $190 billion.
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 worldwide and a top 10 buyer over the past two years. Additionally, Tether holds approximately $20 billion in physical gold and $7 billion in bitcoin reserves.