In a recent announcement, Tether, the leading stablecoin issuer by market capitalization, revealed its first-quarter net profit reached an impressive $1.04 billion. Concurrently, its excess reserves surged to an unprecedented $8.23 billion. However, specific comparisons with previous quarters or years were not disclosed. The company reported achieving a total annual net profit of more than $10 billion for the year 2025.
As of March 31, Tether’s dollar-pegged USDT token-related liabilities held steady at around $183 billion, while its total assets stood just under $192 billion, according to its quarterly report. This release coincides with a global uptick in stablecoin demand, driven by their expanding role beyond crypto trading into international payment systems. Notably, Visa recently expanded its stablecoin settlement pilot to include additional blockchains such as Base, Polygon, Canton Network, Arc, and Tempo, alongside previously supported networks like Ethereum, Solana, Avalanche, and Stellar.
Tether’s excess reserves saw an increase from $6.3 billion at the close of 2025, attributed to sustained profitability and a reserve base focused on short-duration, high-quality liquid assets, as per the firm’s statement.
Ranked third in cryptocurrency market capitalization after bitcoin and ether, USDT boasts a valuation nearing $190 billion. The bulk of Tether’s reserves are allocated in U.S. government-backed instruments and short-term liquidity facilities. It is recognized as the 17th-largest holder of U.S. Treasuries worldwide, having ascended to the top ten buyers over the past two years, outpacing nations like Taiwan, Israel, and the UAE.
The company also disclosed its physical gold holdings at approximately $20 billion, with a bitcoin reserve close to $7 billion.