Tether Posts $1 Billion Profit in Q1 2026 as Gold Reserves Near $20 Billion

TLDR

• Tether reported $1.04 billion in net profit for Q1 2026
• Gold reserves reached $19.8 billion, representing 132 tons of physical bullion
• Excess reserves hit a record $8.23 billion by March 31, 2026
• Treasury bill exposure stood at around $141 billion, making Tether the 17th largest holder of US Treasuries globally
• Gold prices fell around 13% since the US-Iran conflict began in late February

Tether, the company behind the world’s largest dollar-pegged stablecoin, reported about $1.04 billion in net profit for the first quarter of 2026. The results came alongside a quarterly attestation showing total assets of just over $191 billion against liabilities of around $183 billion.

Excess reserves reached a record $8.23 billion by March 31. That gap between assets and liabilities is what Tether points to as proof that every USDT token in circulation is backed.

USDT had around $183 billion in token-linked liabilities at the end of March. The company said more than 5 billion USDT were added in the first weeks of the second quarter, with circulation at or near record levels.

Tether CEO Paolo Ardoino said the company’s goal is to make sure USDT works the same way in any market condition. He also tied recent growth to the launch of Tether Wallet, a self-custody app aimed at everyday users of the stablecoin.

How Tether Holds Its Reserves

The largest portion of Tether’s reserves sits in US Treasury bills. Direct and indirect exposure reached about $141 billion by the end of March, placing Tether as the 17th largest holder of US Treasuries in the world.

The company said most reserve assets are in short-dated government debt and short-term liquidity facilities. These are kept separate from Tether’s proprietary investment portfolio, which is funded by profits and excess capital and does not count toward the reserve backing for USDT.

Physical gold holdings came in at about $20 billion. Tether said this is actual bullion, not paper claims. The company bought more than six tons of gold in the first quarter alone, though that pace was slower than 2025, when it purchased over 70 tons.

Bitcoin holdings were valued at around $7 billion, giving Tether a position in the largest crypto asset by market cap.

Gold Prices Fell During the Quarter

Gold was volatile in the first quarter. Prices hit a record near $5,600 in January before dropping sharply. The metal has fallen about 13% since the US-Iran conflict started at the end of February.

The conflict has weighed on gold because bullion pays no interest, and the standoff has dampened hopes for central bank rate cuts.

Trump confirmed the naval blockade on Iran would remain in place. Iran said the Strait of Hormuz would stay closed until the blockade ends.

Gold did gain on Thursday after Japan’s government intervened in currency markets, pushing the yen to its biggest jump in three years. A weaker dollar tends to support gold prices since the metal is priced in dollars.

The World Gold Council reported that central banks added gold in the first quarter at the fastest pace in more than a year.

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