Tether reported approximately $1.5 billion in net operating profit for the second quarter of 2026, underscoring the continued strength of the world’s largest stablecoin issuer as demand for USDT reached new highs. The company said growth in its U.S. Treasury portfolio and repurchase agreement investments remained the primary drivers of earnings, while the number of USDT users climbed to a record level.
Growing Stablecoin Demand
According to Tether’s latest quarterly attestation, the circulating supply of USDT expanded to roughly $184.6 billion by the end of June, allowing the stablecoin to maintain more than 60% of the global stablecoin market. The company attributed the increase to rising adoption across emerging markets, cross-border payments, and digital asset trading.
Key highlights from the quarter included:
- Net operating profit of approximately $1.5 billion.
- USDT circulation reaching about $184.6 billion.
- Total assets increasing to nearly $187.7 billion.
- Excess reserves standing at approximately $4.1 billion.
Tether also stated that its reserves continue to be heavily invested in short-term U.S. Treasury securities and repurchase agreements, reinforcing its strategy of maintaining highly liquid backing for USDT.
Reserve Strategy Evolves
While profitability remained strong, Tether’s excess reserve buffer declined from the previous quarter after unrealized losses on its gold and Bitcoin holdings affected the balance sheet. At the same time, the company continued to reduce its secured loan exposure while increasing its allocation to physical gold as part of a broader reserve diversification strategy.
Management also highlighted ongoing investments beyond stablecoins, including initiatives focused on tokenized capital markets and financial infrastructure in Africa. The company said these efforts are intended to expand blockchain-based financial services beyond cryptocurrency trading.
Despite the lower reserve cushion, Tether emphasized that its reserve position continues to exceed its liabilities, supporting the stability of USDT as adoption continues to rise. The latest results reinforce Tether’s dominant position in the stablecoin market, even as regulatory scrutiny and competition from rival issuers continue to intensify.
