Tether, the leading stablecoin issuer by market capitalization, has announced a net profit of $1.04 billion for the first quarter, accompanied by a substantial increase in its reserve buffer to $8.23 billion. The company did not disclose comparative figures for the previous year or the fourth quarter, though it 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 amounting to approximately $183 billion, according to the firm's quarterly report. Total assets stood at just under $192 billion. This announcement comes at a time when global demand for stablecoins is on the rise, 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, which increased from $6.3 billion at the end of 2025, is attributed to the company's sustained profitability and a reserve base primarily composed of high-quality, short-duration liquid instruments. With a market capitalization of nearly $190 billion, USDT ranks as the third-largest cryptocurrency, following bitcoin and ether. The majority of Tether's reserves are invested in U.S.
government-backed instruments and short-term liquidity facilities, positioning the firm as the 17th-largest holder of U.S. Treasuries globally.
Over the past two years, Tether has emerged as a top 10 buyer of U.S. Treasuries, surpassing countries like Taiwan, Israel, and the UAE. Additionally, the company holds approximately $20 billion in physical gold and about $7 billion in bitcoin reserves.