Tether Ltd. reported an operating profit of $1.5 billion [1] for the second quarter of 2026.
The financial results highlight the company's ability to generate significant revenue through U.S. Treasury securities and gold holdings during a period of volatility in the broader cryptocurrency market.
According to the reports, the issuer of the USDT stablecoin saw its total supply climb to $184.6 billion [3] by the end of the quarter. While some reports indicate the supply barely grew, adding only $446 million [4], others note that the circulation increased despite a shrinking stablecoin market [5].
Tether also expanded its physical asset reserves during the April to June period. The company increased its gold holdings to more than 146 metric tons [1]. These assets, along with repo agreements and U.S. Treasuries, form the basis of the reserves backing the stablecoin.
Despite the high operating profit, the company's excess reserves fell to $4.11 billion [3]. This decrease occurs as the company continues to manage the balance between its circulating supply and its reserve assets.
The profit was driven primarily by strong earnings from holdings in U.S. Treasury securities [5]. This reliance on traditional financial instruments allows the company to maintain stability even when crypto-asset prices fluctuate.
“Tether Ltd. reported an operating profit of $1.5 billion for the second quarter of 2026.”
Tether's shift toward increasing gold holdings and relying on U.S. Treasuries signals a strategy of diversifying away from purely digital risks. While the $1.5 billion profit demonstrates strong monetization of its reserve base, the drop in excess reserves to $4.11 billion suggests a tightening of the cushion used to maintain the stablecoin's peg during market stress.
