Stablecoin issuer Tether (USDT) published its attestation for the first quarter of 2026 on Friday, posting $1.04 billion in net profit.
The report, prepared by global independent accounting firm BDO, showed excess reserves had increased to a record $8.23 billion in Q1, supported by its continued profitability, albeit below the pace of its more than $10 billion in annual profit last year. However, the attestation provides a point-in-time snapshot of reserves as of March 31 and does not constitute a full financial audit.
Tether's reserves remain heavily concentrated in short-duration, high-quality liquid instruments, the firm said, with about $141 billion exposure to U.S. Treasury bills as of March 31. That makes it one of the top 20 largest holders of U.S. Treasurys globally, alongside sovereign nations like Saudi Arabia and South Korea, and underscores its growing role in channeling demand for U.S. dollars.
Beyond Treasuries, reserves also include limited other asset classes, according to the report, including gold holdings valued at around $20 billion and bitcoin worth approximately $7 billion. "The diversification reflects a deliberate balance between liquidity, resilience, and exposure to macro assets that perform under stress conditions," the firm said.
As of March 31, Tether's total assets stood at over $191.7 billion and its total liabilities at $183.5 billion, of which $183.4 billion relates to digital tokens issued, reflecting the $8.2 billion excess.
Tether noted that its proprietary investments, held through Tether Investments, are not included in the reserves backing issued tokens and are funded from the company's excess capital and profits, fully segregated from USDT reserves.
"Our responsibility is to make sure USDT works without compromise," Tether CEO Paolo Ardoino said in a statement. "That means building a system that behaves the same way in any market condition, not just when things are stable."
USDT in circulation remained broadly stable during the first quarter, with total token-related liabilities of approximately $183 billion as of March 31, the firm said.
"As of April, USDT continues to trade at or near all-time highs in circulation, with an increase of more than 5 billion USDT, reflecting sustained demand into the second quarter," Ardoino added.
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