Tether, the entity behind the most widely-used 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 latest financial report highlights the growth in its excess reserves, which have risen from $6.3 billion at the end of 2025. This substantial reserve base is primarily composed of high-quality, liquid instruments with short durations, underscoring the company's continued profitability. As of March 31, the total value of USDT in circulation remained stable, with total token-related liabilities amounting to approximately $183 billion.
The company's total assets stand at nearly $192 billion. The release of this report coincides with an increasing global demand for stablecoins, driven by their expanding use cases beyond cryptocurrency trading, notably in international payments.
Recently, Visa expanded its stablecoin settlement pilot to include nine blockchains, further solidifying the role of stablecoins in mainstream financial transactions. USDT, with a market capitalization of just under $190 billion, ranks as the third-largest cryptocurrency, following bitcoin and ether. Tether's reserve holdings are predominantly invested in U.S. government-backed instruments and short-term liquidity facilities, with the company positioning itself as a significant holder of U.S.
Treasuries, surpassing several countries in its holdings over the past two years. Additionally, Tether holds approximately $20 billion in physical gold and about $7 billion in bitcoin reserves, further diversifying its asset base.