Tether Sees $1.04B Profit in Q1 as US Treasury Holdings Reach $141B
Tether, the top stablecoin issuer, has reported a net profit of $1.04 billion for the first quarter of 2026, with its excess reserves rising to a record $8.23 billion. The company's reserves remain heavily concentrated in US Treasuries, with around $141 billion in direct and indirect exposure, making it the 17th largest holder of US Treasuries globally.
As of March 31, Tether's total assets stood at approximately $191.8 billion, exceeding liabilities of around $183.5 billion. The company's USDT circulating supply remained stable at about $183 billion at the end of the first quarter, with CEO Paolo Ardoino stating that supply has increased by more than $5 billion in April. Tether's proprietary investments are held separately from reserves backing USDT and are funded through excess capital and profits.
The report, prepared by accounting firm BDO, also highlights the growing demand for stablecoins in emerging markets. According to DefiLlama data, the total stablecoin market is valued at about $320 billion, with USDT accounting for roughly 59% of the sector. Ardoino noted that USDT's user base reached an all-time high of about 570 million in the first quarter, driven by demand for digital dollars across emerging markets. However, stablecoin adoption has also drawn scrutiny from global regulators, who warn of potential risks to emerging economies.
Tether's growth is also reflected in its reserve composition, which includes about $20 billion in physical gold and $7 billion in Bitcoin (BTC). The company has begun the formal audit process, providing increased transparency into its operations. As the largest stablecoin issuer, Tether's performance has significant implications for the broader crypto market, particularly in emerging markets where demand for digital dollars is on the rise.
The increasing adoption of stablecoins in emerging markets is driven by their potential to provide faster and cheaper remittance payments, as well as a means to preserve value in high-inflation environments. However, regulators have warned of the potential risks of widespread stablecoin adoption, including currency substitution and reduced effectiveness of domestic monetary policy. As the stablecoin market continues to evolve, it is likely that regulators will play a crucial role in shaping its future.