TLDR:
- Tether’s excess reserves fell 50% to $4.11 billion after a record $8.23 billion in Q1 2026.
- Net operating profit hit $1.50 billion, driven mainly by U.S. Treasury and repo income sources.
- USD₮ issuance rose to $184.6 billion, pushing Tether’s stablecoin market share past 60% overall.
- Tether cut secured lending by $2.38 billion and expanded gold holdings to over 146 tons total.
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. The company also expanded its gold holdings past 146 tons while reducing secured lending exposure.
Reserve Buffer Narrows Amid Market Volatility
Tether’s excess reserves declined by nearly 50% during the second quarter. The drop followed sharp price swings across gold and Bitcoin markets. Despite the decline, reserves still exceeded liabilities by billions of dollars.
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 full picture suggests a Q2 loss exceeding $4 billion once unrealized gains and losses are counted. Tether did not detail every factor behind the shift.
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.
Tether reduced its secured lending exposure by $2.38 billion, a cut of about 15%. 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
Treasury Holdings and Global Growth Support Operations
Net operating profit reached $1.50 billion, driven mainly by U.S. Treasury and repo returns. Tether remained among the largest holders of U.S. government debt. Short-term liquidity facilities also added 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₮ issuance rose to $184.6 billion, an increase of roughly $446 million from the prior quarter. 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.
Gold holdings expanded to more than 146 tons after 14 tons were added during the quarter. 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.