Tether, the entity behind the most valuable stablecoin, disclosed 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 opted not to release comparative figures from the previous year or the preceding quarter, although it did announce 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 token-related liabilities amounting to approximately $183 billion, while total assets stood at nearly $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.
This development is underscored by Visa's recent announcement to extend its stablecoin settlement pilot to nine blockchains. Tether's excess reserves, which have grown from $6.3 billion at the end of 2025, are attributed to sustained profitability and a reserve base comprising short-duration, high-quality liquid instruments.
With a market capitalization of just under $190 billion, USDT ranks as the third-largest cryptocurrency, 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 emerging as the 17th-largest holder of U.S.
Treasuries globally and a top 10 buyer over the past two years. Additionally, Tether holds approximately $20 billion in physical gold and $7 billion in bitcoin reserves.