Tether reported $1.5 billion in net operating profit for the third quarter of 2026. Its reserve buffer nearly doubled to $7.95 billion, maintaining strong liquidity.
The quarterly result matched the $1.5 billion recorded in the second quarter of 2026. Net operating profit for the first nine months of the year was $4.5 billion.
Generating $1.5 billion in net operating profit while maintaining nearly $8.0 billion in excess reserves gives us a strong foundation for that work.
The reserve buffer, which represents assets in excess of liabilities, rose from $4.1 billion at the end of June to $7.95 billion at the end of September. Total reserve assets reached $191.5 billion against total liabilities of $183.5 billion.
| Metric | Q3 2026 (Sept 30) | Q2 2026 (June 30) |
|---|---|---|
| Net operating profit (quarterly) | $1.5 billion | $1.5 billion |
| Reserve buffer | $7.95 billion | $4.1 billion |
| Total reserve assets | $191.5 billion | Not stated |
| Total liabilities | $183.5 billion | Not stated |
| Bitcoin reserves value | $8.37 billion | ~$5.8 billion |
Most income came from US Treasury bills and reverse repurchase agreements. Holdings of US Treasury bills, direct and indirect, reached $132.4 billion. USDT issuance held near $184 billion across the first three quarters of 2026.
The world's largest stablecoin, USDT, makes up around 60% of a $297.3 billion stablecoin market, DefiLlama data shows.
The purpose behind our reserve strategy is to ensure we can continue to serve people when conditions become more difficult
Tether CEO Paolo Ardoino said on X on Friday that USDT had more than 700 million users, with most adoption in emerging markets.
Treasury Holdings and Market Context
Tether's holdings of US Treasury debt are comparable to South Korea's $134.2 billion and surpass the United Arab Emirates' $116.1 billion in US government debt, according to US Treasury Department figures for August.
Tether vs Sovereign Debt Holders
Tether Treasury Holdings
As of September 2026
$132.4 billion
- Direct and indirect holdings
- Comparable to South Korea's US debt
Sovereign Comparisons
August US Treasury Data
N/A
- South Korea: $134.2 billion
- UAE: $116.1 billion
At September's end, Tether's Bitcoin reserves stood at $8.37 billion, compared with approximately $5.8 billion at the end of June.
Under ISAE 3000R, BDO conducted a reasonable-assurance engagement. It concluded that the Financial Figures and Reserves Report presents information fairly in all material respects, measured against the criteria and management accounting policies set out in the report.
The firm obtained confirmations directly from banks and depositaries, then checked reconciliations between accounting records and bank statements. BDO tested sampled asset valuations and reconciled management's accounting records with blockchain ledgers. It also sampled collateral supporting secured loans.
Assurance Limitations and Discrepancies
BDO's assurance covers only the report and related total assets and liabilities as of September 30 at 11:59 PM UTC. The firm says it performed no procedures and gave no assurance for any other date or time.
The report says valuation assumes normal trading conditions. It doesn't cover extraordinary markets or substantial custodian or counterparty illiquidity that could delay realization. BDO doesn't assure management's going-concern assessment.
What we know
- BDO's assurance covers only September 30 at 11:59 PM UTC.
- Valuation assumes normal trading conditions.
Still unclear
- Whether reserve balances changed after September 30.
- How quickly Tether could realize all reserve assets under extraordinary market conditions.
- Reconciliation between the $132.4 billion and $122.84 billion Treasury bill figures.
Tether's release separately puts its direct and indirect holdings of US Treasury bills at $132.4 billion, while the BDO schedule lists $122.84 billion. The documents don't provide a reconciliation between them.
Bitcoin fell more than 3% for the week and was on course for a fourth consecutive weekly loss. The drop came amid a hawkish Federal Reserve outlook at the October meeting and reports of a $6.3 billion hack at Binance.
By Friday morning in Asia, CoinGlass put total crypto liquidations at $1.53 billion. Long positions made up 83.8% of the amount.
Binance suspended both deposits and withdrawals to contain the situation after the reported hack.
In August, Tether said KPMG US had completed its first full independent financial statement audit. The audited statements weren't made public.
