Tether Q1 Earnings Top $1B With Reserves Climbing to New High

Tether’s reserves hit $8.23B as USDT supply rises, backed by Treasuries, gold, and Bitcoin holdings.

Stablecoin giant Tether reported strong first-quarter results, posting $1.04 billion in net profit. Growth in reserves and continued demand for USDT kept the firm on a solid footing. Rising holdings of U.S. government debt also point to its expanding role in global dollar liquidity. Recent figures suggest steady momentum, though at a slower pace than last year’s earnings.

Q1 Snapshot Shows Strengthening Reserves Despite Slower Profit Pace

An attestation prepared by BDO showed excess reserves reached a record $8.23 billion as of March 31. That figure reflects ongoing profitability, though it trails the company’s more than $10 billion in profit recorded across 2025. The report offers a snapshot of reserves at quarter-end rather than a full audit.

Reserve composition remains focused on short-duration, liquid instruments. Holdings include roughly $141 billion in U.S. Treasury bills, making Tether one of the largest global holders of such assets. Countries like Saudi Arabia and South Korea rank alongside it. This positioning reflects growing influence in dollar-denominated markets.

Additional reserves include gold valued at nearly $20 billion and Bitcoin valued at about $7 billion. Company statements said the mix aims to balance liquidity with exposure to assets that perform during market stress.

USDT Circulation Jumps by $5B as Tether Strengthens Balance Sheet

Financial data shows total assets exceeding $191.7 billion at the end of Q1. Liabilities stood at $183.5 billion, of which $183.4 billion was tied to issued digital tokens. The resulting surplus aligns with the reported excess reserves of $8.1 billion.

Management noted that proprietary investments held through Tether Investments remain separate from reserves backing USDT. Those positions are funded through company profits and are not tied to token liabilities.

Chief executive Paolo Ardoino said the firm’s priority remains consistency across market conditions. He stressed the need for USDT to function reliably during both stable and volatile periods.

“Our responsibility is to make sure USDT works without compromise. That means building a system that behaves the same way in any market condition, not just when things are stable,” Ardoino said in a statement.

Circulating supply held steady through the quarter, with token-related liabilities near $183 billion. Activity picked up in April, as circulation increased by more than 5 billion USDT. That trend points to continued demand heading into the second quarter.