Tether generated approximately $1.5bn (£1.1bn) in net operating profit during the second quarter of 2026, helped by interest earned on US Treasury holdings and income from repo operations.
The stablecoin issuer reported total assets of about $187.7bn at the end of June, against reported liabilities of $183.6bn. That left the company with approximately $4.1bn in excess reserves, according to its latest reserve attestation.
The figures were compiled by accounting firm BDO and released on Friday. US government-backed securities remained the largest part of Tether’s reserve portfolio, with earnings from those assets providing the main contribution to the company’s quarterly result.
Tether’s returns are closely linked to US financial markets because of its significant exposure to short-term government debt and related repo transactions. Changes in Federal Reserve policy or movements in Treasury yields could therefore affect future profits, even if demand for USDT continues to increase.
USDT’s circulating supply reached approximately $184.6bn by the end of June. On the basis of Tether’s figures, the token accounted for more than 60% of the global stablecoin market.
The company changed the balance of its reserves during the quarter. It reduced secured lending by about $2.4bn while increasing its physical gold holdings. Tether did not provide a complete breakdown of the borrowers or collateral connected to the reduction in secured loans.
It bought a further 14 tonnes of gold, taking total holdings above 146 tonnes. The move continues Tether’s expansion beyond cash-equivalent reserves into assets including gold and Bitcoin.
Tether said its portfolio remained resilient despite sharp price movements in both gold and Bitcoin during the quarter. Its Bitcoin holdings were valued at approximately $5.8bn at the end of June.
Bitcoin exposure could generate additional returns if prices rise, but it also creates more market risk than short-dated US government debt. The company’s reserve structure means that, although USDT is used worldwide, Tether remains substantially connected to US interest rates and financial markets.
Expansion of USAT and global operations
Tether is also developing a separate US-focused stablecoin, USAT. The token recently launched on Celo, becoming the second mainnet to support it after Ethereum.
Users can mint and redeem USAT directly on Celo without depending on third-party bridges. Celo’s CIP-64 upgrade also allows approved ERC-20 tokens to pay network transaction fees, meaning USAT can be used for gas payments without users needing to hold a separate token.
The launch extends Tether’s US-oriented product to a blockchain commonly used for digital-dollar payments, while keeping USAT’s development separate from the company’s larger offshore USDT operation.
Tether said it added more than 30 million users worldwide during the second quarter. It is also continuing preparations for a full audit by a Big Four accounting firm, although it has not given a date for completion.
The company is exploring tokenised capital-market infrastructure in Africa. On 28 July, Tether and the Nairobi Securities Exchange signed a memorandum of understanding covering tokenised securities, blockchain-based market systems and digital-asset education in Kenya.
The organisations will examine whether USDT could support settlement infrastructure in areas where Kenyan regulations permit it. However, the memorandum does not approve a tokenised security, create a trading venue or commit the exchange to using USDT.
No pilot date, budget or binding timetable for implementation has been announced. Any future project would depend on regulatory approval, technical assessments and whether the exploratory agreement develops into a formal initiative.
The wider digital-assets sector continues to attract significant attention. Recent industry developments include Ondo Finance considering a $500m acquisition as tokenised securities pass $36bn, Coinbase reporting a $359m loss after revenue missed expectations for a third consecutive quarter, and Strategy posting an $8.2bn loss as Bitcoin fell below its cost basis.
Other developments include New York’s legal action against Kalshi in a broad prediction-market crackdown, changes to the merged CLARITY Act text, the DTCC’s progress in tokenisation, a reported 526 million tasks completed at two dollars each by Pi’s human workforce, and Strategy selling stock to fund dividends.
Tokenised Nvidia has also found an early market in memecoin collateral, while Hyperscale Data sold 100 BTC to help finance an artificial-intelligence centre. Crypto ownership in Canada rose to 25% in 2026, and Visa’s chief executive played down the threat posed by Open USD to Tether and USDC.
