Tether's first-quarter net profit exceeds $1 billion! "Excess reserves" soar past $8.2 billion, reaching a new high

Leading stablecoin issuer Tether once again delivers impressive results. According to the quarterly attestation report released last Friday, Tether’s net profit in the first quarter of this year reached $1.04 billion. Supported by strong profitability, its excess reserves climbed to $8.23 billion, hitting a new all-time high.
The report, issued by independent accounting firm BDO, shows that although Tether’s profit growth in the first quarter slowed slightly compared to last year (when it earned over $10 billion annually), its continued profitability still pushed Tether’s excess reserves to new peaks. However, it should be noted that this report only presents a snapshot of Tether’s reserve assets as of March 31, not a full financial audit.
Tether emphasizes that the company’s reserve assets remain highly concentrated in “short-term, high-quality, and highly liquid” financial instruments. As of March 31, the company held $141 billion in U.S. Treasuries, making it one of the top 20 largest holders of U.S. debt globally, on par with sovereign nations like Saudi Arabia and South Korea, further confirming Tether’s pivotal role in driving global demand for U.S. dollars.
In addition to U.S. Treasuries, the report also reveals other strategically significant asset allocations, including approximately $20 billion in physical gold and about $7 billion in Bitcoin. Tether states:

“This diversification is well thought out. We aim to achieve a perfect balance among assets in terms of liquidity, resilience, and their ability to preserve value under extreme economic pressures.”

As of March 31, Tether’s total assets exceeded $191.7 billion, with total liabilities of $183.5 billion, of which $183.4 billion came from issued tokens. After deducting liabilities from assets, Tether’s excess reserves amounted to $8.2 billion.
Additionally, Tether clarifies that the private equity investments made through its investment arm, “Tether Investments,” are fully funded from the company’s earnings and excess capital, completely segregated from USDT reserves.
Tether CEO Paolo Ardoino emphasized in a statement: “Our responsibility is to ensure USDT operates under any market conditions. This means we must build a system that remains stable whether the market is calm or stormy.”
Looking back at Q1, the overall circulation of USDT remained stable, with total issued liabilities reaching approximately $183 billion by the end of March. For the future, Ardoino also shared optimistic outlooks for the second quarter: