Tether Reports $1.04 Billion Q1 Profit as US Treasury Holdings Reach $141 Billion

Tether, the issuer of the world's largest stablecoin USDT, reported a net profit of $1.04 billion for the first quarter of 2026. According to an attestation prepared by BDO, the company's total assets reached $191.8 billion, comfortably exceeding liabilities of approximately $183.5 billion. This has pushed excess reserves to a record $8.23 billion. The firm's balance sheet remains heavily anchored by US Treasuries, with direct and indirect exposure totaling $141 billion. This concentration makes Tether the 17th largest holder of US Treasuries globally. Other reserve assets include $20 billion in physical gold and $7 billion in Bitcoin. USDT continues to dominate the stablecoin sector, commanding roughly 59% of the $320 billion total market capitalization. CEO Paolo Ardoino noted that the user base has reached an all-time high of 570 million, with the circulating supply increasing by more than $5 billion in April following a stable Q1 end of $183 billion. Growth is particularly pronounced in emerging markets. In Latin America, stablecoins accounted for 40% of crypto purchases in 2025, surpassing Bitcoin's 18% share. In Africa, the assets are increasingly utilized for remittances and as a hedge against inflation, which has exceeded 20% in several nations. However, this rapid adoption has triggered regulatory warnings. The Financial Stability Board cautioned in its 2025 annual report that the widespread use of dollar-denominated stablecoins could lead to currency substitution and diminish the effectiveness of domestic monetary policies in developing economies.