Tether, the leading stablecoin issuer by market capitalization, has announced a first-quarter net profit of $1.04 billion, accompanied by a record increase in excess reserves to $8.23 billion. The company did not disclose comparative figures for the previous year or the fourth quarter, but reported a net profit exceeding $10 billion for the entirety of 2025. As of March 31, the circulation of the dollar-pegged USDT remained stable, with total token-related liabilities of approximately $183 billion, while the company's total assets approached $192 billion. The quarterly report coincides with a surge in global demand for stablecoins, driven by their expanding use in international payments beyond cryptocurrency trading.
Recently, Visa expanded its stablecoin settlement pilot to nine blockchains, including Base, Polygon, Canton Network, Arc, and Tempo, in addition to its existing support for Ethereum, Solana, Avalanche, and Stellar. The growth in excess reserves, up from $6.3 billion at the end of 2025, is 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 nearly $190 billion, trailing behind bitcoin and ether.
The majority of Tether's reserves are invested in U.S. government-backed instruments and short-term liquidity facilities, with the firm ranking 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 countries such as Taiwan, Israel, and the UAE. Additionally, the company holds approximately $20 billion in physical gold and $7 billion in bitcoin reserves.