Tether reported $1.5 billion in net operating profit for the third quarter of 2026, while increasing its excess reserves to nearly $8 billion. This is almost double the $4.11 billion cushion it had at the end of June.
By September 30, Tether held $191.45 billion in total reserve assets against $183.50 billion in liabilities. This left the company with $7.95 billion in excess reserves, according to its latest report prepared by BDO.
The company’s direct and indirect U.S. Treasury bill holdings reached $132.4 billion. Its reserves also included $19.08 billion in physical gold and $8.37 billion in Bitcoin.
Tether’s operating profit for the first nine months of 2026 reached $4.5 billion, with most of its income coming from Treasury bills and reverse repurchase agreements.
At the end of June, Tether had $187.75 billion in assets and $183.64 billion in liabilities, leaving a reserve cushion of $4.11 billion. By the end of September, assets had increased by around $3.7 billion while liabilities had slightly declined. This pushed excess reserves up by approximately 94%.
The latest figures show that Tether now holds about $104.34 in assets for every $100 in liabilities, compared with roughly $102.24 three months earlier.
Tether CEO Paolo Ardoino said the company’s main responsibility is to make sure USDT remains reliable whenever users need it. He also highlighted the importance of maintaining enough liquidity to handle redemptions and support the company’s infrastructure.
According to the reserve report, Tether held $122.84 billion directly in U.S. Treasury bills, with an average maturity of less than 90 days. It also had $9.52 billion in overnight reverse repurchase agreements and $7.18 billion in term reverse repos.
Including smaller holdings of non-U.S. Treasury bills and bank deposits, Tether’s cash, cash equivalents and short-term deposits totaled $139.58 billion. This represented around 72.9% of its total reserves.
The company also held $19.08 billion in physical gold bars that meet London Bullion Market Association standards. Its Bitcoin holdings were valued at $8.37 billion, using a price of $83,621.23 per BTC on September 30.
Together, gold and Bitcoin accounted for $27.45 billion, or approximately 14.3% of Tether’s total reserves. This was higher than the combined $24.64 billion reported at the end of June.
Other reserve assets included $14.18 billion in secured loans, $6 billion in other investments, $4.18 billion in public equities and $63.9 million in corporate bonds. Tether says its loans are overcollateralized and supported by margin calls and liquidation measures to protect the collateral.
Although Tether announced $4.5 billion in operating profit for the first nine months, its financial report shows a separate financial result of $1.66 billion for the same period. The report also recorded $519 million in net capital outflows.
Tether’s opening equity stood at $6.81 billion and increased to $7.95 billion by the end of September. The operating profit and financial result are different accounting measures and should not be treated as the same figure.
For comparison, Circle reported $668 million in reserve income and $48 million in net income for the second quarter. The USDC issuer recorded $701 million in total revenue and reserve income, while its distribution, transaction and other costs reached $412 million.
Circle said its reserve income increased 5% year over year, supported by a 25% rise in average USDC circulation. However, a 66-basis-point decline in its reserve return rate limited the overall growth.
Tether’s latest report also included changes to its accounting figures. The company said shareholders approved its audited 2025 financial statements on August 13, 2026. Management adjusted comparative figures and opening equity to match those statements, including updates related to accounting policies and subsequent events.