Amid widespread volatility in the cryptocurrency market, Tether has disclosed a profit exceeding $1 billion for the first quarter of 2026, as announced on Friday. The leading stablecoin issuer reported net earnings of approximately $1.04 billion during this period. Additionally, Tether’s buffer between its circulating stablecoins and backing reserves reached an unprecedented $8.23 billion.
The Q1 financial results were not audited by one of the Big Four accounting firms but instead validated by an Italian verification service based on company statements. In March, Tether engaged KPMG for a comprehensive audit, as reported by Financial Times, in its bid to expand operations within the United States. The firm confirmed that this audit began in early 2026.
Tether maintains nearly $192 billion in reserve assets, with about $141 billion reportedly invested in U.S. Treasuries, making it one of the largest global holders of U.S. government debt. Additionally, the company holds around $20 billion in physical gold and approximately $7 billion in Bitcoin.
Although Tether’s Q1 2026 profits are similar to those from the previous year, they fall short of the record-breaking $4.52 billion profit reported in 2024, driven largely by a surge in Bitcoin and gold prices.
Despite market fluctuations, Tether has made significant progress in the U.S., where stablecoin issuance has been legalized, and it has introduced a token compliant with new regulations. However, this growth has drawn increased scrutiny; two U.S. senators recently questioned Commerce Secretary Howard Lutnick about his close connections to the offshore company.