Tether, one of the world's largest stablecoin issuers, has released its financial results for the first quarter of 2026. According to the company's report, Tether achieved a net profit of $1.04 billion in the first three months of the year. This performance significantly increased the company's excess reserves, bringing them to their highest level ever at $8.23 billion.
The verification report prepared by the independent auditing firm BDO reveals Tether's financial strength, while also emphasizing that this data only provides a "snapshot" as of March 31st. The information in the report does not constitute a full audit; however, it provides important clues about the company's reserve structure and profitability.
US Treasury bonds dominant
When examining Tether's reserve composition, a strong orientation towards low-maturity and high-liquidity instruments is noticeable. Approximately $141 billion of the company's assets are held in US Treasury bonds. This size places Tether among the top 20 institutions globally investing the most in US Treasury bonds. Its position in the same league as countries like Saudi Arabia and South Korea shows the company's growing influence within the financial system.
This structure also provides a significant example of how demand for the US dollar is driven through crypto assets. Capital entering the digital market through stablecoins continues to be largely invested in traditional financial instruments.
Diversification with Gold and Bitcoin
Tether does not limit its reserves solely to bonds. The company's portfolio also includes approximately $20 billion worth of gold and around $7 billion worth of Bitcoin. This diversification strategy aims to increase resilience against different market conditions.
In a statement from the company, it was stated that this approach aims to balance liquidity, resilience, and macroeconomic risks. The inclusion of assets that can maintain their value, especially during stressful market periods, indicates a cautious strategy in reserve management.
Total assets exceed $191 billion
As of March 31, Tether's total assets exceeded $191.7 billion, while its liabilities stood at $183.5 billion. Almost all of these liabilities represent USDT tokens in circulation. The difference of approximately $8.2 billion constitutes the company's excess reserves.
Tether also stated that private investments conducted through its investment arm are separate from the reserves supporting USDT. These investments are financed with the company's profits and excess capital and are completely isolated from the reserve structure.
While the amount of USDT in circulation remained generally flat in the first quarter, demand increased again at the start of the second quarter. Company CEO Paolo Ardoino announced that the circulating supply had increased by more than 5 billion USDT as of April. Ardoino stated that the company's main priority is to ensure that USDT functions smoothly in all market conditions. This approach is directly related to the fact that stablecoins are seen as a safe haven, especially during volatile periods.
