Tether reported another highly profitable quarter, generating approximately $1.5 billion in net operating profit during the second quarter of 2026 as income from US Treasury investments and repurchase agreements continued to support its business.
The results were released as part of the company’s latest reserve attestation prepared by accounting firm BDO.
According to the report, Tether held approximately $187.7 billion in total assets at the end of June, compared with $183.6 billion in liabilities. This left the company with around $4.1 billion in excess reserves, providing an additional buffer beyond the assets needed to back its stablecoins.
The largest portion of Tether’s reserves remains invested in US government-backed securities.
These holdings continue to be the company’s primary source of income. As interest rates remain relatively elevated, Tether earns significant returns from US Treasury bills and related repo transactions, helping it generate substantial profits while maintaining the reserves backing USDT.
The report also showed continued growth for Tether’s flagship stablecoin.
By the end of June, the circulating supply of USDT reached approximately $184.6 billion, giving it more than 60% of the global stablecoin market. This further strengthened Tether’s position as the world’s largest stablecoin issuer.
During the quarter, the company made several adjustments to its reserve portfolio.
One notable change was a reduction in secured lending. Outstanding secured loans declined by about $2.4 billion, although Tether did not provide detailed information about the borrowers or the specific collateral involved.
At the same time, the company increased its exposure to gold.
Tether purchased an additional 14 tons of physical gold, bringing its total holdings to more than 146 tons. The move reflects the company’s ongoing strategy of diversifying part of its reserves beyond traditional cash-equivalent assets.
The company also continues to hold Bitcoin as part of its reserve portfolio.
At the end of June, Tether’s Bitcoin holdings were valued at approximately $5.8 billion.
While assets such as gold and Bitcoin can generate additional gains when prices rise, they also introduce greater volatility compared with short-term US government debt. Even so, Tether said its reserve portfolio remained resilient despite significant market fluctuations during the quarter.
The report highlights how closely Tether’s business is connected to the US financial system.
Although USDT is used globally, much of Tether’s profitability depends on income generated from US Treasury securities and related financial instruments. As a result, changes in US interest rates can have a direct impact on the company’s earnings.
If rates remain high, Treasury investments may continue generating strong returns. If rates fall, future profits from those holdings could decline even if USDT circulation continues to grow.
Beyond USDT, Tether is also expanding its newer stablecoin product, USAT.
The company recently launched USAT on the Celo blockchain, marking its second supported network after Ethereum.
The integration allows users to mint and redeem USAT directly on Celo without using third-party bridges. Thanks to Celo’s recent network upgrades, approved stablecoins such as USAT can also be used to pay transaction fees, making the user experience more convenient.
Unlike USDT, which serves a global audience, USAT is being positioned as a separate product focused on US-related use cases.
Tether is also looking beyond stablecoins and exploring broader blockchain infrastructure opportunities.
On July 28, the company signed a memorandum of understanding with the Nairobi Securities Exchange to explore blockchain-based financial infrastructure in Kenya.
The agreement includes discussions around tokenized securities, digital asset education, and blockchain-powered market systems.
Both sides will evaluate whether USDT could potentially play a role in future settlement systems where local regulations permit. However, the agreement does not guarantee any product launch, trading platform, or tokenized securities project.
Any future implementation would still require regulatory approvals, technical reviews, and additional planning.
Tether also reported adding more than 30 million users worldwide during the second quarter, further expanding its global footprint.
At the same time, the company said it continues preparing for a full audit by one of the major global accounting firms, although no timeline for completion has been announced.
Overall, the latest results show that Tether remains one of the most profitable companies in the cryptocurrency industry. Strong income from US Treasury investments, growing USDT adoption, rising gold reserves, and ongoing expansion into new markets have helped strengthen its financial position.
With more than $184 billion worth of USDT in circulation and billions of dollars in excess reserves, Tether continues to play a central role in the global digital asset ecosystem while expanding its influence beyond traditional stablecoin services.
