Tether Posts $1.5 Billion Q2 2026 Profit as USDT Supply Reaches $184.6 Billion

Tether reported approximately $1.5 billion in net operating profit for the second quarter of 2026, driven primarily by returns on US Treasury holdings and repo operations.

$4.1 Billion in Excess Reserves

As of June 30, Tether's total assets reached roughly $187.7 billion against reported liabilities of $183.6 billion, resulting in approximately $4.1 billion in excess reserves.

These figures come from Tether's latest reserve attestation, prepared by accounting firm BDO and released on Friday. Attestations provide point-in-time snapshots of reserve assets but are narrower in scope than full financial audits, which assess internal controls and reporting practices over a sustained period. US government-backed securities remained the largest component of the company's reserve portfolio. Interest income from those holdings, combined with returns from repo transactions, served as the primary profit driver for the quarter.

Tether's heavy exposure to short-term US debt means its earnings remain closely tied to Federal Reserve policy decisions and fluctuations in Treasury yields. Because Tether's reserve portfolio is weighted toward short-dated government securities, changes in the federal funds rate have a direct bearing on the interest income the company earns on its holdings.

The circulating supply of USDT stood at approximately $184.6 billion by the end of June. According to Tether's own data, the stablecoin accounted for more than 60% of the global stablecoin market, maintaining a wide lead over competitors such as Circle's USDC, which ranks as the second-largest stablecoin by market capitalization.

Reserve Adjustments: Gold Up, Secured Lending Down

During the quarter, Tether restructured portions of its reserve portfolio. Outstanding secured loans were reduced by roughly $2.4 billion, though the company did not disclose details about borrowers or collateral associated with the reduction. The pullback narrows a reserve category that has previously attracted scrutiny from market analysts who questioned whether secured lending introduced credit risk into a portfolio intended to back a dollar-pegged token.

Simultaneously, Tether acquired an additional 14 tons of physical gold, bringing total gold holdings to more than 146 tons. The move reflects Tether's ongoing strategy of diversifying beyond cash-equivalent reserves into alternative assets including gold and Bitcoin.

Tether reported that its portfolio remained resilient despite notable price volatility in both gold and Bitcoin markets during the quarter. The company's Bitcoin holdings were valued at approximately $5.8 billion as of June 30. While these positions can generate additional returns during favorable market conditions, they also introduce greater balance-sheet volatility compared to short-dated US government securities.

Deep Ties to US Financial Markets

Tether's reserve architecture maintains a significant link to US financial markets, even though USDT circulates globally. The company's profitability remains heavily dependent on income generated from US Treasury securities and associated repo transactions. Consequently, shifts in US interest rates could influence future earnings regardless of growth in USDT circulating supply.

Tether is also advancing a separate US-oriented stablecoin, USAT. The initiative comes as US lawmakers have advanced legislation aimed at creating a federal regulatory framework for payment stablecoins, which could establish specific compliance, reserve, and disclosure requirements for tokens operating in the US market. A purpose-built product structured for US regulatory alignment would operate under different parameters than Tether's primary USDT, which is predominantly used in offshore and international markets. The token recently deployed on Celo, marking its second supported mainnet after Ethereum. USAT users on Celo can mint and redeem the token natively without depending on third-party bridges. Additionally, Celo's CIP-64 upgrade enables approved ERC-20 tokens to cover network transaction fees, allowing USAT holders to pay for gas costs directly rather than maintaining a separate token.

The Celo deployment extends Tether's US-focused product to a blockchain widely used for digital-dollar payments. It also keeps USAT's growth trajectory distinct from the company's larger offshore USDT operations.

Expansion Beyond Stablecoin Issuance

Tether reported adding more than 30 million users worldwide during the second quarter. The company also confirmed it is continuing preparations for a full audit by a Big Four accounting firm, though no timeline for completion was provided. A completed audit would represent a notable transparency milestone for Tether, which has historically operated under quarterly attestations rather than full audits. In 2021, Tether settled with both the New York Attorney General and the Commodity Futures Trading Commission over disclosures related to its reserves, paying $18.5 million and $41 million respectively.

In Africa, Tether is exploring tokenized capital-market infrastructure. The initiative aligns with USDT's established role in emerging economies, where the token is widely used for cross-border remittances, trade settlement, and as a dollar substitute in regions with limited access to stable local currencies. On July 28, Tether and the Nairobi Securities Exchange signed a memorandum of understanding covering tokenized securities, blockchain-based market infrastructure, and digital asset education in Kenya.

Under the agreement, the parties will evaluate whether USDT could serve as settlement infrastructure where Kenyan regulations permit. However, the memorandum does not authorize any tokenized security, establish a trading platform, or obligate the exchange to adopt USDT.

No pilot launch date, budget allocation, or binding implementation schedule was disclosed. Any subsequent developments will depend on regulatory approval, technical evaluations, and whether the exploratory arrangement progresses into a formal initiative.