Tether reports $1.5 billion Q2 profit as excess reserves fall by half to $4.1 billion

Tether reported a $1.5 billion net operating profit for Q2 2026, driven by its U.S. Treasury holdings. However, its excess reserves, a key safety cushion, fell by half to $4.11 billion. The issuer of the USDT stablecoin, whose circulation grew to $184.6 billion, also increased its physical gold holdings by 14 tons and added nearly 1,800 bitcoin to its reserves during the quarter.

Q2 2026 financial results

• ▪The Q2 2026 profit was driven by returns from Tether's holdings of U.S. Treasuries and repurchase agreements
• ▪As of June 30, 2026, Tether held approximately $187.75 billion in assets against $183.64 billion in liabilities
• ▪Tether's excess reserves fell to $4.11 billion as of June 30, 2026, down from $8.23 billion three months earlier
• ▪Tether reported $1.5 billion in net operating profit for the second quarter of 2026

USDT circulation growth

• ▪USDT's market share increased to over 60% during the quarter, even as the overall stablecoin market shrank
• ▪The supply of Tether's USDT stablecoin in circulation reached approximately $184.6 billion at the end of Q2 2026, an increase of about $446 million

Reserve asset composition

• ▪Most of the assets backing USDT are invested in short-term U.S. Treasuries, repurchase agreements, and other liquid government-backed assets
• ▪Tether increased its bitcoin holdings by about 1,796 coins to a total of 98,933 BTC
• ▪The company reduced its secured lending exposure by approximately $2.38 billion, or 15%, during Q2 2026

Gold holdings expansion

• ▪The value of Tether's gold holdings decreased to $18.84 billion from $19.84 billion due to a drop in gold prices
• ▪Tether increased its physical gold holdings by 14 tons in Q2 2026, bringing its total to over 146 metric tons

Financial inclusion strategy

• ▪CEO Paolo Ardoino claimed on X that Tether "continues to deliver financial inclusion in the developing world like no other company or organization ever has."
• ▪Ardoino stated Tether is investing in technologies to expand financial services and AI access for underserved populations