Tether reported a $1.50 billion net operating profit for the second quarter of 2026, according to its latest attestation prepared by BDO. The stablecoin issuer's excess reserves fell to $4.11 billion by June 30, down from $8.23 billion at the end of the first quarter.

Total USD₮ issuance climbed to approximately $184.6 billion during the quarter, an increase of roughly $446 million from the prior period. The company also expanded its gold holdings past 146 tons — adding 14 tons during the quarter — while reducing secured lending exposure by $2.38 billion, a cut of about 15%. As the largest stablecoin by market capitalization, Tether's reserve posture is closely watched across digital asset markets, since USDT underpins a significant share of crypto trading liquidity and cross-border settlement.

Reserve Buffer Narrows Amid Market Volatility

Tether's excess reserves declined by nearly 50% during the second quarter, a drop that followed sharp price swings across gold and Bitcoin markets. Despite the decline, reserves still exceeded liabilities by billions of dollars. The divergence between the positive operating profit and the shrinking reserve buffer underscores the difference between realized income — such as Treasury and repo yields — and unrealized mark-to-market movements on reserve assets like gold and Bitcoin, which flow through comprehensive income rather than the operating line.

Total assets stood at $187.75 billion against liabilities of $183.64 billion. Digital tokens issued accounted for nearly all reported liabilities, at roughly $183.62 billion. The gap between assets and liabilities left reserves at $4.11 billion.

Financial disclosures show a first-half comprehensive result near negative $3.17 billion. Combined with the first quarter's $1.04 billion net profit, the figures suggest a Q2 loss exceeding $4 billion once unrealized gains and losses are factored in. Tether did not detail every factor behind the shift.

CEO Paolo Ardoino said, "We remained one of the world's largest buyers of U.S. Treasuries, reduced secured lending by $2.38 billion, and added 14 tons of physical gold." Reserves stayed concentrated in short-duration, high-quality liquid assets such as Treasuries. If ranked alongside sovereign holders, Tether's Treasury exposure would place it among the top buyers of U.S. government debt globally.

Tether just released its quarterly USDT attestation for Q2 2026. Tether had a great second quarter of 2026, with ~1.5B in net operating profit, despite highly volatile global markets. USDT user base continued to grow, reaching the new all-time-high of 650M+, with the widest… pic.twitter.com/x4qxgacCRi — Paolo Ardoino (@paoloardoino) July 31, 2026

Treasury Holdings and Global Growth Support Operations

Net operating profit of $1.50 billion was driven mainly by U.S. Treasury and repo returns. Tether remained among the largest holders of U.S. government debt, with short-term liquidity facilities also contributing to the quarter's overall returns.

Ardoino said, "Q2 demonstrated the strength of Tether's reserve strategy under real market pressure." He added that the assets backing some of Tether's reserves were tested directly during the quarter. Ardoino noted that USD₮ remained fully backed throughout, with reserves still exceeding liabilities by $4.11 billion.

USD₮'s share of the total stablecoin market grew past 60%. "Our global user base continued to grow by more than 30 million users," Ardoino said, pointing to steady platform adoption. That market position means USDT's reserve health is a systemic consideration for crypto exchanges, lending platforms, and payment corridors, particularly in emerging markets where USDT is widely used for savings and remittances.

Ardoino said the results show Tether has "the liquidity, discipline, and scale to remain resilient across market cycles." The Big Four audit process continued alongside the report's release. Tether has for years faced industry calls to complete a full financial audit, and the ongoing Big Four engagement represents a step toward that longstanding demand, though quarterly attestations by BDO remain the current standard of disclosure.