[DigitalToday reporter Hyunwoo Choo] Tether posted a net profit of $1.04 billion in the first quarter of 2026 and increased excess reserves backing USDT to $8.23 billion. The Block Crypto reported on Thursday that Tether released a first-quarter reserves attestation report with those figures.

The report was prepared by accounting firm BDO. It shows reserves as of March 31, but it is not a full financial audit. Excess reserves did not match the pace of profit growth that topped $10 billion for the full year last year, but rose to a record high as profitability continued.

As of March 31, Tether's total assets exceeded $191.7 billion and total liabilities were $183.5 billion. Of that, $183.4 billion was liabilities related to issued digital tokens. USDT circulation remained broadly stable in the first quarter, and token-related liabilities were about $183.0 billion.

Reserves were concentrated in high-quality liquid assets with short maturities. Exposure to short-dated U.S. Treasuries was about $141.0 billion as of March 31. Tether said that scale puts it among the world's top 20 holders of U.S. Treasuries, alongside Saudi Arabia and South Korea.

Some assets besides U.S. Treasuries were also included. Gold holdings were about $20.0 billion and Bitcoin holdings were about $7.0 billion. Tether said that asset mix reflects a balance between liquidity and resilience and macro asset exposure that performs in periods of stress.

Self-investment assets held through Tether Investments were not included in reserves backing issued tokens. Those assets were financed with the company's excess capital and profits and managed separately from USDT reserves.

Paolo Ardoino (파올로 아르도이노), Tether's chief executive officer, said it is the company's responsibility to build a system in which USDT operates the same way in any market environment. He added that USDT circulation increased by more than 5 billion tokens in April and demand is continuing into the second quarter.