Tether Holdings reported its first-quarter financial results for 2026, posting over $1.04 billion in net profit and a record $8.23 billion in excess reserves, while its U.S. Treasury holdings surged to $141 billion.
According to an attestation report by accounting firm BDO, Tether generated approximately $1.04 billion in net profit for the three months ending March 31, 2026. Excess reserves climbed to a record $8.23 billion, reinforcing the firm's buffer above liabilities linked to its USDT token.
Asset and Liability Structure
The report shows total assets of roughly $191.8 billion against liabilities of $183.5 billion, the vast majority tied to tokens in circulation. Supply remained broadly stable during the quarter at around $183 billion, reflecting steady demand for dollar-backed digital assets. Tether's reserve strategy remains heavily concentrated in short-term, highly liquid instruments. Exposure to U.S. Treasury bills reached approximately $141 billion, positioning the company among the largest holders of U.S. government debt globally.
Diversification into Gold and Bitcoin
The reserve mix also includes diversification into other asset classes. Holdings of physical gold totaled about $20 billion, while bitcoin exposure stood at roughly $7 billion. These positions are designed to provide resilience during periods of macroeconomic stress, without compromising liquidity. Importantly, Tether said its proprietary investments are held separately and do not form part of the reserves backing USDT. These investments are funded through excess capital and profits, a structure the company says preserves the integrity and transparency of its core reserves.
CEO Paolo Ardoino: Keeping It Simple, Liquid, and Resilient
Chief Executive Officer Paolo Ardoino emphasized the firm's focus on reliability: "Our responsibility is to make sure USDT works without compromise. The focus is on keeping the structure simple, liquid, and resilient by design, so it does not depend on favorable environments or external support. As of April, USDT continues to trade near all-time highs in circulation, reflecting sustained demand."
USDT Circulation Continues to Grow
Demand for USDT appears to be holding firm. The company noted that circulation has continued to grow into the second quarter, with more than $5 billion in additional issuance since March. Tether also pointed to the rollout of its self-custody wallet as part of a broader push to expand its ecosystem. The latest figures highlight Tether's role as a central player in global dollar liquidity, particularly in regions where access to traditional banking remains limited.
Audit Process Underway
The company also confirmed that a formal audit process has begun, a step long anticipated by market participants seeking greater transparency. Tether's Q1 performance suggests that scale, liquidity, and profitability can coexist. Whether that model withstands future regulatory scrutiny and market shifts remains a key question for the industry.
Separately, Tether Investments announced a strategic plan on Wednesday to transform Twenty-One Capital into an integrated bitcoin powerhouse through a series of proposed mergers, including with Strike. Although still in the proposal stage, the move signals Tether's ambition to further expand its footprint in the crypto ecosystem.