Tether reported a $1.5 billion second-quarter operating profit as USDT supply reached $184.6 billion. Strong Treasury income supported earnings while the wider crypto market remained under pressure. The company also maintained a $4.11 billion reserve surplus at quarter-end.

USDT Supply Expands During Market Weakness

USDT issuance rose by approximately $446 million between March and June 2026, lifting outstanding tokens to nearly $184.6 billion despite a broader contraction in the crypto market. The growth reinforced USDT's position within the global stablecoin sector, where it competes primarily with Circle's USDC, the second-largest stablecoin by market capitalization.

The token held more than 60% of the stablecoin market during the quarter, while the wider stablecoin sector carried an estimated value near $307 billion. The figures reflected continued demand for dollar-linked liquidity across trading and payment networks, a sector that has drawn increasing regulatory scrutiny. The European Union's Markets in Crypto-Assets regulation has imposed new compliance requirements on stablecoin issuers operating in the bloc, while lawmakers in the United States have advanced multiple proposals for federal stablecoin oversight.

Tether added more than 30 million users during the reporting period. That growth supported USDT adoption among businesses, exchanges, and individuals across several regions. The company continued positioning the token as a settlement and savings tool in developing markets with limited banking access, where dollar-pegged digital assets have gained traction as alternatives to volatile local currencies.

Treasury Portfolio Drives Quarterly Earnings

Tether generated the majority of its quarterly earnings from United States Treasury securities and repurchase agreements. These short-term assets produced steady income under elevated interest rates, enabling the reserve portfolio to deliver $1.5 billion in net operating profit.

The company kept most reserves in government-backed instruments and short-term liquidity facilities. This structure provided Tether with sufficient liquid assets to process redemptions during volatile conditions while reducing reliance on higher-risk holdings across the reserve portfolio.

Tether remained among the world's largest holders and buyers of United States Treasuries, with holdings comparable to those of several sovereign nations. Its Treasury exposure continued supporting revenue while protecting reserve liquidity across several redemption scenarios. Higher yields on short-dated debt strengthened earnings without increasing token issuance risks, though the income model remains sensitive to changes in the Federal Reserve's interest rate trajectory.

Reserve Buffer Supports Broader Expansion

Tether reported total assets of $187.75 billion as of June 30, 2026. Total liabilities reached $183.64 billion, including $183.62 billion linked to issued tokens. Assets exceeded liabilities by approximately $4.11 billion.

The company reduced secured lending exposure by about $2.38 billion during the quarter, representing a 15% reduction from the previous reporting period. Tether also added 14 tons of physical gold while managing sharp market swings, adding to a gold reserve that diversifies its Treasury-heavy portfolio.

BDO confirmed the reserve figures through its quarterly attestation dated June 30. Meanwhile, Tether continued work toward a Big Four audit and broader financial infrastructure. The company has pursued a full audit by a top-four accounting firm for several years amid longstanding questions about reserve transparency. The company has expanded into payments, data, energy, and technology while USDT remains its main product.