Tether releases Q1 2026 proof of reserves report: net profit exceeds $1 billion, reserves hit a new high

Tether Announces Q1 2026 Financial Report, Net Profit Reaches $1.04 Billion, Surplus Reserves Hit a Record High of $8.23 Billion. The Company Holds $141 Billion in U.S. Treasuries, Climbing to 17th Largest Globally.

Net Profit and Reserves Both Hit New Records, $1.04 Billion Demonstrates Strong Liquidity

Global Stablecoin Leader Tether Officially Releases Q1 2026 Financial Certification Report. Despite Significant Price Fluctuations in the Cryptocurrency Market During the Quarter, This Stablecoin Giant Still Delivered an Impressive Performance.

According to the certification document completed by accounting firm BDO, Tether recorded approximately $1.04 billion in net profit from January to March 2026. Although this figure did not surpass the quarterly record set during Bitcoin’s surge in 2024, its profitability remains at the industry forefront. More notably, Tether’s excess reserves have grown to $8.23 billion, reaching a new high.

Image Source: BDO Accounting Firm Tether’s Excess Reserves Have Grown to $8.23 Billion, Setting a New Record

As of March 31, 2026, Tether’s total assets reached $191.77 billion, with total liabilities at $183.54 billion, of which about $183.4 billion are related to issued digital tokens. This asset-liability structure ensures that Tether (USDT) is backed by over 100% reserves.

CEO Paolo Ardoino states that Tether’s primary responsibility is to ensure $USDT can operate smoothly under any market conditions.

This extreme liquidity and resilience design allow $USDT to continue functioning as a core financial infrastructure outside traditional banking systems. As emerging markets’ demand for dollar-denominated settlements continues to grow, $USDT ’s circulation remained on an upward trend entering the second quarter, with circulation increasing by over $5 billion in April alone.

Owning $141 Billion in U.S. Treasuries, Ranks 17th Largest Holder Globally

A deeper look into Tether’s reserve composition reveals an asset portfolio comparable to that of sovereign nations. The report shows Tether currently holds about $141 billion in U.S. Treasuries, including direct holdings and exposure via repurchase agreements. This massive holding has elevated Tether to the 17th position among global U.S. government bond holders, surpassing Taiwan, Israel, and the United Arab Emirates. Considering that U.S. short-term government bond yields remain above 4%, this investment can generate approximately $4 billion in annual interest income, making it a key profit driver.

Image Source: Tether Tether Currently Holds About $141 Billion in U.S. Treasuries, Ranks 17th Among Global U.S. Government Bond Holders

In addition to core sovereign bonds, Tether’s reserve diversification strategy is increasingly taking shape. Currently, its reserves include about $20 billion in physical gold and approximately $7 billion worth of Bitcoin ($BTC). This combination of traditional safe-haven assets and digital gold aims to balance liquidity, resilience, and overall economic asset returns.

Ardoino emphasizes that this asset allocation is carefully considered, aiming to maintain system resilience under extreme stress conditions.

It’s worth noting that Tether’s investment division, Tether Investments, is fully separated from its stablecoin reserves. All external investments (such as Bitcoin mining, AI data centers, etc.) are funded by the company’s excess profits, ensuring that $USDT ’s reserves remain unaffected.

Further Reading
Tether Opens Source for Bitcoin Mining System! Mining OS Integrates Global Miners, Breaking the Mining Black Box
Tether Ventures into AI Health Tech! How QVAC Health Integrates Biological Data While Protecting Your Privacy?

Officially Launching KPMG Audit Process, Actively Responding to New US Regulatory Standards

In response to increasingly strict US regulatory scrutiny, Tether has taken a key step toward compliance transparency. The company confirmed that in Q1 2026, it officially initiated a comprehensive financial audit conducted by one of the “Big Four” accounting firms, KPMG.

• Related News: Tether Hires KPMG for Audit! $185 Billion USDT Moves Toward Transparency, Aims to Alleviate Reserve Concerns

This marks Tether’s transition from the previous “Attestation” report to a higher standard of “Formal Audit.” The move is seen as a proactive response to the US GENIUS Act passed in July 2025, which mandates stablecoin issuers to hold fully verified 1:1 USD reserves and achieve full compliance by January 2027.

Although Tether has long been criticized for refusing to undergo “Big Four” audits, this partnership indicates a shift toward greater transparency to secure a broader operational space in the US market. As influence expands, Tether faces higher political pressures.

Recently, US Senators Elizabeth Warren and Ron Wyden sent letters to Commerce Secretary Howard Lutnick, inquiring about their interests and related loans involving Tether. This political attention reflects the inevitable friction during Tether’s integration with traditional finance and political systems. Conducting a formal audit to enhance transparency is a necessary step for Tether to solidify its market reputation and mitigate legal risks.

Strategic Investment in the Entire Bitcoin Industry Chain, Transitioning Toward a Comprehensive Financial Giant

Beyond maintaining dominance in the stablecoin industry, Tether leverages its strong financial capacity for strategic expansion. In late April 2026, Tether Investments announced support for a major merger proposal involving TwentyOne Capital, Strike, and Electron Energy. If successful, this merger will create a publicly listed giant that combines Bitcoin holdings, mining, and financial services, with a scale second only to MicroStrategy. This demonstrates Tether’s ambition to go beyond just “printing money,” aiming to build a complete financial empire centered around the Bitcoin ecosystem.

Additionally, Tether has partnered with Canaan Inc. and ACME Swisstech to develop modular Bitcoin mining hardware. This new architecture separates computing units from power cooling components, significantly improving operational efficiency. Such investments in physical infrastructure, alongside its AI data center ventures, show the company’s pursuit of diversified revenue streams.

Ardoino believes that $USDT has already surpassed being just a cryptocurrency trading medium, becoming an essential channel for many people in developing countries to access dollar liquidity.

Amid changing legal frameworks, Tether is attempting to transform itself into a comprehensive fintech giant with sovereign-level reserves and technological innovation, supported by its massive cash flow.