Tether Nets $1.5B Profit As Reserve Buffer Nears $8B

TL;DR

• Tether recorded $1.5 billion in net operating profit in Q3 2026, bringing its nine-month total to $4.5 billion.
• The company’s excess reserves rose from $4.1 billion to $7.95 billion, while total assets reached $191.5 billion.
• Tether holds $132.4 billion in U.S. Treasury bills, directly and indirectly, with USDT issuance remaining close to $184 billion.

Tether generated $1.5 billion in net operating profit during the third quarter of 2026 and increased its excess reserves to nearly $8 billion, according to its latest financial attestation report, prepared by independent accounting firm BDO.

The company recorded $4.5 billion in net operating profit during the first nine months of the year. Quarterly earnings were in line with those reported between April and June, primarily driven by income from U.S. Treasury bills and reverse repurchase agreements.

The report, covering the period ending September 30, also confirmed that USDT issuance remained close to $184 billion throughout the first three quarters, despite fluctuations in the crypto market.

Tether Nearly Doubles Its Excess Reserves in Three Months

The company’s excess reserves reached $7.95 billion, up from $4.1 billion at the end of the second quarter. The increase amounted to approximately $3.8 billion.

At the end of September, Tether reported total assets of $191.451 billion and liabilities of $183.496 billion. Of those liabilities, approximately $183.470 billion related to tokens issued by the company.

The difference between assets and liabilities amounted to $7.9546 billion, according to the figures included in the financial report.

Most of the reserves are held in liquid, short-term instruments. The company uses these assets to meet USDT redemption requests, including during periods of heightened volatility.

U.S. Treasury Bills Drive Tether’s Earnings

Tether’s direct and indirect holdings of U.S. Treasury bills reached $132.4 billion, accounting for a substantial portion of the assets backing the stablecoin.

These instruments, together with reverse repurchase agreements, generated most of the company’s operating income during the first nine months of 2026.

Paolo Ardoino, CEO of Tether, said the company’s priority is to ensure that USDT continues to function reliably when markets and financial systems come under pressure.

The executive emphasized that generating $1.5 billion in quarterly profit while maintaining nearly $8 billion in excess reserves provides the resources needed to meet redemptions and sustain operations.

Ardoino also explained that the company’s reserve policy is designed to preserve Tether’s liquidity during adverse financial conditions and periods of geopolitical instability.