Tether says Treasury exposure neared $120 billion in Q1, posts $1 billion profit

USDT issuer Tether said its "total exposure" to U.S. Treasurys had neared $120 billion at the end of March, according to a report published Thursday.

Tether's USDT is the world's largest U.S. dollar-pegged stablecoin by supply, with over $149 billion worth in circulation. The company publishes quarterly attestation reports detailing the reserves it keeps on hand to back USDT. Accounting firm BDO completes the attestations on behalf of Tether.

The stablecoin issuer continued to deliver strong returns, reporting "over $1 billion in operating profit from traditional investments during the quarter," Tether said.

Tether said the $120 billion figure includes indirect Treasury exposure through money market funds and reverse repurchase agreements. Direct exposure to U.S. Treasurys totaled about $99 billion at the end of the first quarter.

As a point of reference, in February, Japan led all other holders of U.S. Treasurys with $1.1 trillion, according to Reuters.

Tether continues to pour capital into a diverse investment portfolio. The company said it has "more than $2 billion allocated toward long-term initiatives in sectors such as renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure."

Tether also said Q1 was its first fiscal period "under regulatory supervision in El Salvador," its new headquarters.