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Tether’s excess reserves nearly doubled to $7.95 billion in the third quarter, up from $4.1 billion in June, according to a BDO attestation released Friday. The stablecoin issuer reported $1.5 billion in net operating profit for the quarter, bringing its nine-month total to $4.5 billion, while USDT supply held near $184 billion.
Tether’s third-quarter financial report showed total reserve assets of $191.45 billion against approximately $183.50 billion in liabilities, leaving the company with $7.95 billion in excess reserves.
The figure represents a substantial improvement from the $4.1 billion surplus reported at the end of June, marking an increase of approximately $3.8 billion over three months.
The growing financial cushion is significant because it represents the amount by which the company’s reported assets exceed its outstanding obligations.
For stablecoin issuers, maintaining sufficient reserves is essential to meeting redemption requests, particularly during periods of market disruption or heightened demand for liquidity.
The latest figures indicate that Tether reserves have strengthened despite fluctuations in the broader cryptocurrency market.
Tether’s quarterly net operating profit of $1.5 billion also matched its performance in the second quarter, demonstrating relatively consistent earnings during the period.
Through the first nine months of 2026, the company generated approximately $4.5 billion in cumulative net operating profit.
These earnings were primarily attributed to interest income from the company’s substantial holdings of short-term U.S. government securities and related financial instruments.
Meanwhile, the supply of USDT remained broadly stable at approximately $184 billion during the first three quarters.
The relatively unchanged circulation suggests that Tether’s reported profitability was driven largely by returns on its investment portfolio rather than significant growth in the number of stablecoins issued.
Tether said its expanding reserve surplus improves its capacity to honor redemptions and maintain financial stability during difficult market conditions.
The company’s latest attestation revealed that U.S. Treasury bills remained the largest component of its asset holdings.
Direct Treasury bill investments totaled approximately $122.84 billion as of September 30.
When Treasury-backed overnight reverse repurchase agreements were included, Tether’s direct and indirect exposure to U.S. Treasury bills reached approximately $132.4 billion.
Cash equivalents and other short-term deposits accounted for $139.58 billion, representing approximately 73% of total reserve assets.
The concentration in short-term financial instruments reflects the company’s strategy of maintaining substantial liquidity while earning returns on assets supporting USDT.
Beyond government securities, Tether reserves included approximately $19.08 billion in precious metals, predominantly physical gold.
The company also reported $8.37 billion in Bitcoin holdings, reflecting its continued exposure to the cryptocurrency market.
Other assets included $14.18 billion in secured loans, $6 billion in other investments, and approximately $4.18 billion in publicly traded equities.
The portfolio demonstrates that Tether maintains investments across traditional financial instruments, precious metals, and digital assets.
However, different categories of assets carry varying levels of liquidity and market risk, particularly during periods of financial uncertainty.
While Treasury bills and short-term cash equivalents generally provide greater liquidity, holdings such as Bitcoin and equities remain exposed to price fluctuations.
The substantial Treasury allocation nevertheless continues to serve as the primary source of earnings supporting Tether’s operating performance.
Accounting firm BDO independently examined Tether International’s financial figures and reserves report as of September 30, 2026.
The firm concluded that the reported information was fairly presented in all material respects under the accounting policies adopted by the company.
The assessment covered the composition and valuation of assets supporting Tether’s stablecoin obligations.
However, the attestation represents an evaluation of the company’s financial position at a specific reporting date rather than a comprehensive audit of its financial performance throughout the quarter.
This distinction is important when interpreting the findings, as the report does not provide the same scope of examination as a full financial statement audit covering an entire reporting period.
Consequently, the reported values might not fully reflect the amounts that could be realized during extraordinary market disruptions or periods of severe counterparty illiquidity.
These qualifications underline the importance of considering liquidity conditions alongside the headline value of Tether reserves.
Commenting on the report, Tether CEO Paolo Ardoino emphasized the company’s responsibility to maintain the reliability of its dollar-pegged stablecoin.
“Our responsibility is to make sure USDT remains dependable when people need it most, including when markets and financial systems come under pressure,” — Paolo Ardoino, CEO of Tether.
Ardoino also maintained that the company’s reserve management strategy prioritizes liquidity and the ability to meet redemption obligations during challenging market conditions.
The report provides updated information about the financial assets backing USDT, offering investors and users a clearer view of the company’s reported reserve composition.
The financial disclosure followed Tether’s involvement in the response to a major security breach affecting cryptocurrency exchange Binance.
On Thursday, October 29, Binance experienced a reported security incident involving approximately $6.3 billion in cryptocurrency assets.
As blockchain companies and stablecoin issuers coordinated efforts to restrict the movement of stolen funds, Tether intervened to freeze a substantial amount of USDT.
Ardoino confirmed the action in a post on X, writing that the issuer “froze more than 1.567B USDT” following large withdrawals from Binance-linked wallets.
The amount represented approximately one-quarter of the total estimated value of assets affected by the breach.
By freezing the tokens, Tether restricted their movement from designated addresses, limiting the ability of unauthorized holders to transfer the affected USDT.
The action demonstrated the operational control that centralized stablecoin issuers can exercise over tokens issued through their systems.
Although the intervention was separate from the company’s quarterly financial results, it highlighted Tether’s involvement in responding to cryptocurrency security incidents.
The development also came as the company’s growing financial holdings attracted attention because of the significant value of assets supporting USDT.
With Tether reserves reaching $191.5 billion and excess assets approaching $8 billion, the latest figures suggest a stronger reported financial position at the end of September.
However, the company’s ability to maintain that position will continue to depend on asset valuations, liquidity management, investment performance, and redemption demand.
The third-quarter report ultimately shows that Tether generated substantial earnings while maintaining a relatively steady USDT supply.
As stablecoins remain closely integrated with cryptocurrency trading and financial transactions, the composition and reliability of Tether reserves will continue to be important considerations for users, investors, and market participants.
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