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

Jul 31, 2026

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.