Tether Posts $1.04B Q1 Profit; $20B Gold, $141B Treasuries

Tether reported $1.04 billion in net profit for the first quarter of 2026 and published an attestation for assets backing USD₮ as of March 31, 2026. The document provides a breakdown of the company’s reserve composition and liquidity position.

The attestation listed total assets of $191,767,741,495 and total liabilities of $183,535,531,717, leaving assets above liabilities by $8,232,209,778. Of the liabilities, $183,438,487,810 were linked to issued digital tokens.

Direct and indirect exposure to U.S. Treasury bills reached about $141 billion by March 31. Tether reported that most reserve assets were held in government-backed instruments and short-term liquidity facilities, with a focus on short-dated sovereign debt to support redemptions.

Physical gold holdings in the reserve book were reported at about $20 billion. The company described this portion as actual bullion rather than paper claims. Crypto holdings included roughly $7 billion in Bitcoin.

Tether said proprietary investments are held under Tether Investments and are funded with excess capital and profits. Those investments are not counted as part of the reserve backing for USD₮, and the firm reported they do not affect the liquidity, quality or transparency of the reserve base.

In the attestation, Paolo Ardoino, Tether’s chief executive, wrote, “Our responsibility is to make sure USD₮ works without compromise. That means building a system that behaves the same way in any market condition, not just when things are stable.” By April, the company reported USD₮ circulation near record levels and more than 5 billion USD₮ had been added in the second quarter, partly tied to the launch of Tether Wallet, a self-custody app.

Market context at the time of the disclosure included a drop in gold prices of as much as 1.2% after a prior gain. Traders were monitoring geopolitical tensions in the Middle East and currency moves, including a sharp rise in the yen after government intervention. The World Gold Council reported that central banks increased gold holdings in the first quarter at the fastest pace in more than a year.

The attestation provides a snapshot of Tether’s reserve allocations and the firm’s stated approach to maintain liquidity through holdings in short-term government instruments, physical bullion and selected crypto assets.