Tether reported $1.04 billion in net earnings for the first quarter of 2026 and a record Tether earnings buffer of $8.23 billion, mainly backed by $141 billion in US Treasuries, in a quarterly filing published by accounting firm BDO on May 1, its most detailed financial disclosure to date.
summary
- Tether’s $1.04 billion in Q1 earnings represents interim 47% year-over-year growth, with excess reserves rising from $5.6 billion in Q1 2025 to $8.23 billion in Q1 2026, and total assets reaching $191.77 billion against $183.54 billion in liabilities.
- The $141 billion US Treasury position makes Tether the 17th largest holder of US government debt globally, with $20 billion in physical gold and $7 billion in bitcoin rounding out the reserve base.
- KPMG’s formal audit process began in March 2026, pushing Tether toward a full Big Four audit for the first time after years of relying on testimony from BDO and a former Italian accounting firm.
Tether’s earnings and reserve numbers were published in the company’s Q1 2026 certification on May 1. press release It confirmed that the certificate prepared by BDO showed a net profit of about US$1.04 billion and a surplus reserve of US$8.23 billion. “Our responsibility is to ensure that USDT works without any compromises,” said CEO Paolo Ardoino. “This means building a system that behaves the same way in any market situation, not just when things are stable.” The first-quarter earnings are driven by Tether’s $141 billion treasury position, which, at prevailing treasury rates above 4%, will generate approximately $4 billion in annual interest income.
The timing of the disclosure has political significance. Such as crypto.news I mentionedUS banks have been pushing hard to slow down the GENIUS Act rulemaking process, in part because the law would require stablecoin issuers to hold fully verified dollar reserves. Tether has long resisted full disclosure and has never conducted an audit of the Big Four. KPMG’s participation, announced in March 2026, is the clearest sign yet that the company is preparing for the formal auditing standard that the GENIUS Act is expected to require. Such as crypto.news NotarizedThe FDIC has proposed GENIUS Act rules that would require stablecoin issuers to hold 1:1 reserves backed by cash or highly liquid instruments, a standard that technically satisfies Tether’s reserve split but requires full audit verification rather than certification to satisfy regulators and institutional counterparties. Such as crypto.news trackingthe GENIUS Act was signed into law in July 2025 and is scheduled to go into full effect no later than January 18, 2027, giving Tether a limited runway to achieve verified compliance.
