Tether, Q1 net profit $1 billion… Reserves expand to $141 billion in U.S. Treasury bonds

Tether (USDT) publicly disclosed over $1 billion in net profit and a solid reserve composition through the “Audit Confirmation Letter” in the first quarter of 2026. As the core of the stablecoin market, the issuance of USDT remains high, with market attention drawn to the proportion of U.S. Treasuries and holdings of gold and Bitcoin (BTC). According to TokenPost 13 news, the report was verified by BDO.

Tether stated that as of March 31, net profit was approximately $1.04 billion. During the same period, total debt related to USDT was about $183 billion, with circulation remaining stable at current levels.

U.S. Treasuries are the core of the reserve… Gold: $20 billion, Bitcoin: $7 billion

The most notable part of the report is the management of reserves. Tether indicated that most of its assets are allocated to short-term highly liquid products, with directly and indirectly held U.S. Treasuries totaling about $141 billion. This ranks it 17th among global bond-holding institutions.

However, Tether is not solely reliant on U.S. Treasuries. As part of its reserve diversification, the company holds about $20 billion in precious metals, all of which are physical gold. Holdings of Bitcoin (BTC) also reach approximately $7 billion. The company emphasizes that this composition is a structure designed to maintain liquidity and stability while being capable of responding to macroeconomic changes.

Tether CEO Paul Adoino stated, “It is our responsibility to ensure USDT operates flawlessly in any market. The structure must be simple, liquid, and resilient.” He added that by April, the circulation of USDT had risen to near record highs, with an increase of over 5 billion tokens.

The sustained demand for stablecoins is driven by their practicality as a means of payment and remittance. Tether explained that the launch of its self-custody application, “Tether Wallet,” has also contributed to expanding demand. Market interpretations of this report suggest that, compared to the performance of stablecoin issuers, the quality of reserves and asset allocation have become more important verification indicators.

Summary by TokenPost.ai 🔎 Market Analysis: Tether achieved over $1 billion in net profit in Q1 and maintained a stable issuance of about $183 billion USDT, reaffirming its dominant position in the stablecoin market. The reserve structure, centered on $141 billion in U.S. Treasuries, demonstrates a trust strategy based on safe assets, while holdings in gold and Bitcoin diversify risk. 💡 Strategic Highlights: Most reserves are allocated to short-term government bonds to ensure liquidity, while gold and BTC are used to hedge against inflation and market volatility. The growth in USDT demand suggests its role has expanded beyond mere investment assets toward payment and remittance infrastructure. The launch of Tether Wallet and ecosystem expansion can be seen as strategies to ensure long-term usability. 📘 Terminology:

USDT: A representative stablecoin pegged to the US dollar, mainly used for trading and remittances.
Reserve: The actual assets backing the issued stablecoins, serving as a core trust indicator.
U.S. Treasuries (T-Bills): Short-term bonds issued by the U.S. government, considered among the safest assets.

💡 Frequently Asked Questions (FAQ)

Q: Why does Tether’s reserve have a high proportion of U.S. Treasuries?
A: U.S. Treasuries are considered the safest assets globally, capable of being liquidated at any time, thus ensuring the liquidity and stability needed for the core of the stablecoin. Therefore, Tether maintains a high proportion of Treasuries as part of its trust-maintaining strategy.

Q: Why does Tether hold gold and Bitcoin?
A: Gold and Bitcoin are used as assets to hedge against inflation and financial market volatility. The strategy is to diversify risk and enhance long-term stability by adding assets beyond the core structure of Treasuries.

Q: What does the increase in USDT issuance mean for the market?
A: The increase in USDT issuance indicates an expansion of liquidity in the cryptocurrency market and also suggests growing practical use as a means of payment and remittance. This shows that stablecoins are becoming part of the financial infrastructure.

TP AI Notice: This summary was generated using a language model based on TokenPost.ai. It may omit main content from the original text or contain inaccuracies.