Tether has reported a net profit of $1.04 billion for the first quarter of 2026, alongside an unprecedented excess reserve buffer of $8.23 billion. The figures come from a quarterly attestation released on May 1 by accounting firm BDO, which represents the company’s most comprehensive financial disclosure to date. The reserve is primarily backed by $141 billion in US Treasuries, supplemented by $20 billion in physical gold and $7 billion in Bitcoin.
The quarter’s profit reflects a 47% year-over-year increase in the reserve buffer, which grew from $5.6 billion in Q1 2025 to the current record level. Total assets now stand at $191.77 billion against liabilities of $183.54 billion. The substantial Treasury holdings, yielding over 4% interest, contribute approximately $4 billion in annualized income, driving the robust earnings.
CEO Paolo Ardoino emphasized the company’s commitment to stability, stating that USDT must function reliably under any market conditions. The disclosure arrives at a politically sensitive time, as US banks lobby for extended deadlines under the GENIUS Act, which mandates stablecoin issuers to maintain fully verified dollar reserves. Tether’s announcement in March 2026 of a formal KPMG audit signals preparation for the heightened compliance standards expected from the act, which was signed into law in July 2025 and takes full effect by January 18, 2027.
With this audit, Tether moves toward its first Big Four verification, shifting from attestations to a more rigorous audit standard. The reserve composition already meets the GENIUS Act’s requirement for a 1:1 backing by cash or liquid assets, but full audit verification is necessary to satisfy regulators and institutional partners.