While generating a net profit above $1.04 billion, Tether’s excess reserve buffer hit a record $8.23 billion, concentrated in short-duration liquid instruments.
The leading stablecoin issuer has released its attestation report for the first quarter of 2026, revealing a net profit of more than $1 billion. The company was able to generate such profit despite wider volatility and unstable market conditions. This development comes as stablecoins evolve into major dollar infrastructure globally, especially in markets with limited access to USD banking systems.
According to a press release, the leading independent accounting firm, BDO, prepared the attestation, confirming the accuracy of Tether’s financial figures and reserves report.
Tether Releases Q1 2026 Attestation Report
While generating a net profit above $1.04 billion, Tether’s excess reserve buffer hit a record $8.23 billion. The reserve base is concentrated in short-duration, high-quality liquid instruments. By March 31, the firm’s direct and indirect exposure to US Treasury bills had reached $141 billion, making Tether the 17th-largest holder of US Treasuries globally. Tether says short-dated sovereign exposure remains central to its reserve strategy.
In addition to the Treasury bills, Tether’s reserves include precious metals, consisting entirely of $20 billion in physical gold and $7 billion in bitcoin. The goal is to maintain a balance between liquidity, resilience, and exposure to macro assets that perform under stressful conditions.
“Our responsibility is to make sure USD₮ works without compromise. That means building a system that behaves the same way in any market condition, not just when things are stable. The focus is on keeping the structure simple, liquid, and resilient by design, so it does not depend on favorable environments or external support,” Tether’s CEO, Paolo Ardoino, said.
USDT Grows by $5B
Overall, Tether had over $191.7 billion in assets and $183.5 billion in liabilities as of March 31, 2026. The entity’s assets exceeded its liabilities by more than $8.2 billion.
Notably, Tether’s proprietary investments are not included in its USDT reserves. They are fully segregated and funded from the firm’s excess capital and profits. The company claims the investments do not affect the quality, liquidity, or transparency of USDT reserves.
USDT in circulation has grown significantly, expanding by $5 billion in the second quarter of the year. The stablecoin’s market cap hovered above $189 billion at the time of writing.
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“People should not have to question whether the system works; it just has to work,” Ardoino added.
