Tether has published its attestation report for the first quarter of 2026, conducted by BDO, a prominent global accounting firm. This report showcases the stability and growth of the stablecoin issuer, featuring important financial metrics and insights on its reserve strategy.
Understanding Tether’s Reserve Strategy
According to the report, Tether recorded a net profit of around $1.04 billion in Q1. The circulation of USDT has shown consistency, holding steady at approximately $183 billion in token-related liabilities as of March 31.
A significant area of focus in the attestation is Tether’s reserve management. The company disclosed that its reserves are predominantly allocated to high-quality, short-duration liquid instruments.
As of the end of March, Tether’s direct and indirect investments in US Treasury bills (T-Bills) amounted to about $141 billion, making Tether the 17th largest holder of US Treasuries globally.
Additionally, Tether provided insights into its reserve diversification strategy beyond T-Bills. The company indicated that it holds approximately $20 billion in precious metals, primarily in physical gold. Furthermore, Tether’s Bitcoin (BTC) holdings stand at about $7 billion, reflecting a balanced approach aimed at maintaining liquidity while managing exposure to macroeconomic assets that may perform well in times of financial turbulence.
Surge in USDT Circulation in April
Tether’s CEO, Paolo Ardoino, shared insights on the company’s ongoing initiatives and market strategies. “Our commitment is to ensure that USDT performs reliably under all market conditions,” he stated. “This necessitates constructing a system that remains functional not just in periods of stability, but also through volatility.”
Ardoino further emphasized the need for simplicity and resilience in Tether’s structure, asserting that users should always have confidence in the functionality of the system. “People should not have to question whether it works; the system needs to just work,” he remarked.
He also highlighted recent trends in USDT circulation, noting a significant increase in the stablecoin’s presence in the market during April, with a boost of more than $5 billion in circulation. This uptick reflects sustained demand as Tether heads into the second quarter. Supporting this demand is the recent introduction of the Tether Wallet, dubbed “The People’s Wallet.” This self-custody application is designed for the many users who rely on USDT for daily transactions.
Image created with OpenArt; chart sourced from TradingView.com.
