Tether has reported a net profit of approximately $1.04 billion for the first quarter of 2026, according to its latest financial disclosures. The company’s end-of-quarter report reveals a significant increase in gold assets comprising its reserves. As of March 31, 2026, Tether’s excess reserves supporting its USD₮ stablecoin reached an all-time high of $8.23 billion.
Significant shifts in reserve composition
Company data shows Tether held total assets of $191.8 billion at the close of March 2026, with total liabilities standing at $183.5 billion. Nearly all liabilities stem from issued USD₮ tokens on the market. This means Tether’s assets now exceed its liabilities by roughly $8.2 billion, a record surplus for the firm.
A large proportion of Tether’s reserves continues to be allocated to short-term U.S. Treasury bills. Direct and indirect exposure to U.S. government securities rose to $141 billion, placing Tether as the 17th largest holder of U.S. Treasuries globally. The concentration in short-term government debt is intended to ensure instant redemption capability and minimize liquidity risk for USD₮ users.
Gold and BTC strengthen reserve diversity
Tether’s reserves are not limited to bonds. The company disclosed gold holdings approaching $20 billion, noting that the entire amount is held in physical gold. Furthermore, its Bitcoin reserves have reached approximately $7 billion. This illustrates Tether’s effort to balance exposure between traditional stores of value and the largest crypto asset by market cap.
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AAPLTether differentiates between reserves backing USD₮ tokens and its corporate investments. Investments in gold and Bitcoin are financed through surplus capital, not included in direct stablecoin reserves. The company emphasized that this practice does not negatively impact USD₮ liquidity or transparency around reserves.
Tether CEO Paolo Ardoino explained, “We are responsible for ensuring USD₮ operates seamlessly under all conditions. That’s why we have built a system that remains stable even if the markets become turbulent.”
April saw USD₮’s circulating supply reach historic highs, with an additional 5 billion tokens launched in the second quarter. Ardoino linked this strong demand to the rollout of Tether Wallet, an application empowering users to manage their own keys and boosting daily USD₮ usage.
Geopolitics and commodity trends shape reserve strategy
The report highlights a notable climb in the value of Tether’s gold reserves amid ongoing geopolitical tensions influencing global markets. Recent escalations between the U.S. and Iran have pressured gold prices, triggering a single-session drop of 1.2%. This volatility is contributing to central banks’ caution on rate cuts.
Former U.S. President Donald Trump has stated that the naval blockade against Iran will continue, while Iran demands an end to the blockade to reopen the Strait of Hormuz. The crisis, dating back to late February, has pushed gold down by 13% over a two-month period.
Meanwhile, the yen experienced its sharpest daily rally as the Japanese government intervened in currency markets, fueling stronger demand for gold. The weakening U.S. dollar has also supported gold’s price, given the metal’s dollar-based valuation.
According to the World Gold Council, central banks’ gold purchases reached their fastest pace in a year during Q1. Despite recent price declines, analysts remain confident that gold could maintain its strength over the medium to long term.
