Tether Holdings, the issuer of the world's largest stablecoin, reported first-quarter net income of $5.7 billion in its BDO-attested quarterly report on Friday, with USDT circulation crossing the $158 billion threshold for the first time. The figures cement Tether's position as one of the most profitable financial institutions in the world on a return-on-equity basis, despite operating outside the U.S. regulatory perimeter.
The bulk of Tether's earnings — approximately $4.8 billion — came from interest on its $128 billion U.S. Treasury bill holdings, making the El Salvador-based company the 17th-largest holder of U.S. government debt globally, ahead of Germany and just behind Hong Kong. Bitcoin and gold reserves contributed an additional $620 million in unrealized gains during the quarter.
GENIUS Act Compliance Path
Tether confirmed it is preparing to launch a U.S.-domiciled and regulated stablecoin product called USAT, designed to fully comply with the GENIUS Act stablecoin legislation signed into law last December. The U.S.-regulated entity will be a wholly owned subsidiary headquartered in New York, and is targeted for a Q3 2026 launch following federal approvals.
Chief Executive Paolo Ardoino said the U.S. product will be entirely separate from the offshore USDT, which will continue serving non-U.S. markets where Tether dominates. According to Chainalysis, USDT accounts for over 78% of all stablecoin volume in Latin America, 84% in Russia and Central Asia, and over 90% in Vietnam, Pakistan, and Nigeria.
Circle Loses Market Share
Tether's growth has come at the expense of competitor Circle Internet Group, whose USDC supply has stagnated near $63 billion despite Circle's aggressive U.S. regulatory positioning and recent IPO. Circle shares fell 3.8% on Friday to $146.40 after Tether's data was released, reflecting investor concern that regulatory legitimacy has not translated into supply growth in the way the company's prospectus had projected.