Key Takeaways
- Tether reported $1.5 billion in Q3 net operating profit, bringing its total profit for the first nine months of 2026 to $4.5 billion.
- Total reserves reached $191.5 billion, against $183.5 billion in liabilities, leaving nearly $8 billion in excess reserves, almost double the previous quarter.
- U.S. Treasury bills dominated Tether’s reserves, alongside $19.1 billion in precious metals and $8.4 billion in bitcoin, according to an independent attestation by BDO.
Tether’s Excess Reserves Grow in Q3
The company released its third-quarter figures Friday, October 30, showing that total reserve assets stood at $191.45 billion as of September 30, against liabilities of $183.50 billion. The difference left Tether with $7.95 billion in excess reserves, nearly double the $4.1 billion reported at the end of the second quarter.
Tether’s $1.5 billion quarterly net operating profit matched its second-quarter performance, with income primarily generated from its substantial holdings of U.S. Treasury bills and reverse repurchase agreements. The company reported $4.5 billion in cumulative net operating profit through the first nine months of the year.
The figures were included in an independent attestation prepared by accounting firm BDO, which examined Tether International’s financial position as of September 30.
Tether’s USDT stablecoin supply remained relatively steady at approximately $184 billion through the first three quarters of 2026, despite volatility across cryptocurrency markets. The company said its growing reserve surplus strengthens its ability to honor redemptions during periods of financial stress.
U.S. Treasury bills represented the largest component of Tether’s reserves, totaling $122.84 billion. Including Treasury-backed overnight reverse repurchase agreements, the company’s direct and indirect exposure to U.S. Treasury bills reached approximately $132.4 billion. Overall, cash equivalents and other short-term deposits accounted for $139.58 billion, or approximately 73% of total reserves.
The attestation also detailed $19.08 billion in precious metals, primarily physical gold, alongside $8.37 billion in bitcoin holdings. Other reserve assets included $14.18 billion in secured loans, $6 billion in other investments, and $4.18 billion in publicly traded equities.
Tether CEO Paolo Ardoino said the combination of profitability and growing reserves provides financial stability amid geopolitical and market uncertainty.
“Our responsibility is to make sure USDT remains dependable when people need it most, including when markets and financial systems come under pressure,” Ardoino said.
He added that the company’s reserve strategy is intended to preserve liquidity and its ability to meet redemption demands even during difficult market conditions.
BDO concluded that Tether’s September 30 financial figures and reserves report was fairly presented in all material respects under the company’s stated accounting policies. However, the attestation represents a point-in-time assessment rather than a comprehensive audit of the company’s quarterly financial performance.
The report also noted that valuations assume normal market conditions and may not reflect the realizable value of assets during extraordinary disruptions or periods of significant counterparty illiquidity. Despite those qualifications, the results highlight the substantial earnings generated by Tether’s reserve portfolio, even as the supply of its flagship stablecoin remained largely unchanged during the quarter.
On Thursday, Tether played a key role in the response to the $6.3 billion hack of Binance, with Ardoino writing on X that the issuer “froze more than 1.567B USDT” following mass outflows from the leading crypto exchange’s wallets. Freezing the assets means that criminals will be unable to move or exchange the stolen funds, which represent roughly one-quarter of the total USD value of swiped assets.
