Tether, the leading stablecoin issuer by market capitalization, 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 release 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 total USDT in circulation remained stable, with token-related liabilities amounting to approximately $183 billion, while total assets neared $192 billion.
This quarterly report coincides with a surge in global demand for stablecoins, driven by their expanding use in international payments beyond crypto trading. Recently, Visa expanded its stablecoin settlement pilot to include nine blockchains. The growth in excess reserves, up from $6.3 billion at the end of 2025, is attributed to the company's continued profitability and its strategic allocation of reserves in high-quality, liquid instruments. With a market capitalization of nearly $190 billion, USDT ranks as the third-largest cryptocurrency, following bitcoin and ether.
Notably, 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 and a top 10 buyer over the past two years, surpassing several countries. Additionally, Tether holds approximately $20 billion in physical gold and about $7 billion in bitcoin reserves.