TLDR
- Tether announced $1.04 billion in quarterly earnings for Q1 2026
- Physical gold holdings climbed to $19.8 billion, equivalent to 132 tons of bullion
- Surplus reserves reached an all-time high of $8.23 billion as of March 31, 2026
- US Treasury exposure totaled approximately $141 billion, positioning Tether as the 17th largest global holder
- Gold valuations declined roughly 13% following the onset of US-Iran tensions in late February
The issuer of the world’s most widely used dollar-backed stablecoin, Tether, has disclosed approximately $1.04 billion in quarterly earnings for the opening three months of 2026. This financial milestone was accompanied by an attestation report revealing total assets exceeding $191 billion set against liabilities hovering around $183 billion.
By the end of March, surplus reserves had climbed to an unprecedented $8.23 billion. This differential between what the company owns and what it owes serves as Tether’s primary evidence that each USDT token maintains full backing.
Token-related liabilities for USDT stood at approximately $183 billion when the quarter concluded. The firm noted that more than 5 billion additional USDT entered circulation during the opening weeks of Q2, pushing total supply toward historic peaks.
Tether CEO Paolo Ardoino emphasized the organization’s commitment to ensuring USDT maintains consistent functionality regardless of prevailing market conditions. He also attributed some of the recent expansion to the introduction of Tether Wallet, a self-custody application designed for mainstream stablecoin users.
How Tether Holds Its Reserves
US Treasury bills represent the dominant component of Tether’s reserve structure. Combined direct and indirect holdings totaled roughly $141 billion at quarter-end, securing Tether’s position among the top 20 global holders of American government debt.
According to the company, the majority of reserve assets consist of short-maturity government securities and near-term liquidity instruments. These holdings remain segregated from Tether’s proprietary investment activities, which draw from accumulated earnings and surplus capital rather than funds designated for USDT backing.
Physical gold assets reached approximately $20 billion in value. Tether emphasized these represent tangible bullion rather than derivatives or paper instruments. The organization acquired over six tons during Q1, though this acquisition rate represented a slowdown from 2025’s aggressive purchasing program that added more than 70 tons.
Bitcoin positions carried a valuation near $7 billion, establishing Tether as a significant holder of the leading cryptocurrency.
Gold Prices Fell During the Quarter
The precious metal experienced significant turbulence throughout the first quarter. After touching a peak close to $5,600 per ounce in January, prices retreated substantially. Since military tensions between the United States and Iran escalated in late February, gold has surrendered approximately 13% of its value.
The geopolitical crisis has pressured gold valuations because the metal generates no yield, while the ongoing standoff has reduced expectations for imminent central bank interest rate reductions.
Former President Trump verified that naval restrictions targeting Iran would continue. Iranian officials declared the Strait of Hormuz would remain blocked until such measures are lifted.
Gold did experience gains Thursday following Japanese government intervention in foreign exchange markets, triggering the yen’s most substantial single-day appreciation in three years. Dollar weakness typically benefits gold since the commodity trades in US currency.
The World Gold Council documented that central bank gold acquisitions during the first quarter proceeded at the most rapid tempo in over twelve months.
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