Tether, the world's largest stablecoin issuer, has released its Q1 2026 report, revealing a strong start to the year with $1.04 billion in net profit for the first quarter. The company noted that it achieved this substantial earnings figure despite significant turbulence across global financial markets during the period.
The firm further reported that its excess reserves climbed to an all-time high of $8.23 billion as of March 31, 2026, reflecting continued growth in its financial position.
While the majority of Tether's reserves are held in short-term, high-quality liquid instruments, its direct and indirect exposure to U.S. Treasury bills amounted to approximately $141 billion by the end of the first quarter. That level of exposure has elevated Tether to the position of the 17th largest holder of U.S. Treasuries globally, cementing the firm's role as a key player in managing international demand for dollar-denominated assets.
Following the strong first-quarter performance, Tether's total assets stood at approximately $191.8 billion, exceeding its liabilities of $183.5 billion — the bulk of which are tied to issued USDT tokens. The company also reported sustained global usage of its stablecoin, with its circulating supply remaining at scale.
In addition to its Treasury holdings, Tether disclosed that it has continued to diversify a portion of its reserves across both digital and physical assets. Its precious metal holdings include approximately $20 billion in physical gold, while its total Bitcoin holdings are valued at around $7 billion. The company stated that this diversification strategy is designed to balance liquidity needs while maintaining exposure to assets capable of holding up under macroeconomic stress.
Why it matters
Tether's ranking as the 17th largest holder of U.S. Treasuries globally places it alongside a number of sovereign nations, underscoring how a private stablecoin issuer has become a significant participant in the U.S. government debt market.
Excess reserves reaching an all-time high of $8.23 billion means Tether holds more assets than it owes in issued USDT tokens, providing a financial cushion above its liabilities.
Tether's reserve diversification spans both physical gold and Bitcoin alongside its Treasury holdings — a mix the company says is intended to balance liquidity needs with exposure to assets it views as resilient under macroeconomic stress, though the two asset classes carry very different risk profiles.
