Tether, the leading stablecoin issuer by market capitalization, has announced a net profit of $1.04 billion for the first quarter, alongside a record excess reserve of $8.23 billion. The company did not provide 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 token-related liabilities for the dollar-pegged USDT stood at approximately $183 billion, while the company's total assets were just shy of $192 billion. This report comes at a time when global demand for stablecoins is on the rise, driven by their increasing 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 continued profitability and a reserve base comprising short-duration, high-quality liquid instruments. USDT ranks as the third-largest cryptocurrency, with a market capitalization of nearly $190 billion, 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 being the 17th-largest holder of U.S.
Treasuries globally and a top 10 buyer over the past two years, surpassing Taiwan, Israel, and the UAE. Additionally, Tether holds approximately $20 billion in physical gold and around $7 billion in bitcoin reserves.