Tether, the entity behind the most valuable stablecoin, has announced a first-quarter net profit of $1.04 billion, alongside a significant increase in its reserve buffer to $8.23 billion. Notably, the company did not disclose comparative figures from the previous year or the last quarter, although it did report a net profit exceeding $10 billion for the entirety of 2025. The circulation of the USDT stablecoin, pegged to the US dollar, remained stable, with total liabilities related to the token amounting to approximately $183 billion as of March 31.
The company's total assets stood at nearly $192 billion. This quarterly report comes at a time when stablecoins are experiencing increased demand globally, particularly for international payment mechanisms beyond cryptocurrency trading. Recently, Visa expanded its stablecoin settlement pilot to nine blockchains.
Tether's excess reserves, which have grown from $6.3 billion at the end of 2025, are attributed to the company's sustained profitability and a reserve base comprising short-duration, high-quality liquid instruments. As the third-largest cryptocurrency, USDT boasts a market capitalization of just under $190 billion, trailing behind bitcoin and ether.
A significant portion of Tether's reserves is held in US government-backed instruments and short-term liquidity facilities, with the firm being the 17th-largest holder of US Treasuries worldwide. Over the past two years, Tether has emerged as a top 10 buyer of US Treasuries, surpassing several countries. Additionally, the company holds approximately $20 billion in physical gold and about $7 billion in bitcoin reserves.