Tether Reports $1.5 Billion in Operating Profit and $7.95 Billion in Excess Reserves
Key Facts
Tether said on October 30 that its net operating profit was $1.5 billion in the third quarter of 2026, reaching $4.5 billion over the first three quarters of the year. The company said quarterly profit was in line with the previous quarter. Meanwhile, excess assets over liabilities rose to $7.95 billion on September 30. The surplus stood at $4.1 billion at the end of the second quarter, and the company said it increased by $3.8 billion during the third quarter. The results provide a picture of the company’s profitability and the reserve cushion it holds above its liabilities tied to issued tokens.
Tether said USD₮ issuance remained broadly stable at $184 billion over the first three quarters of 2026, despite market volatility. At the end of the second quarter, issuance stood at about $184.6 billion, up about $446 million from the end of the first quarter. The company said at the time that USD₮’s share exceeded 60% of the stablecoin market. The reported stability in issuance over the first nine months contrasts with changes in the second quarter, when the total market capitalization of stablecoins had declined. U.S. Treasury bills and reverse repurchase agreements remain the company’s main sources of income, according to its latest announcement.
Tether said its direct and indirect holdings of U.S. Treasury bills amounted to $132.4 billion. It said Treasury bills and reverse repurchase agreements continued to provide most of its income. These holdings place the company among large holders of U.S. government debt instruments. U.S. Deputy Treasury Secretary Francis Brooke said on September 22 that stablecoin providers already hold nearly $200 billion in Treasury bills and near-maturity government securities. Brooke added that stablecoin growth could increase those holdings in coming years as rules under the GENIUS Act are completed. This reflects the link between the expansion of stablecoin issuance and demand for short-term Treasury instruments.
At the market level, the International Monetary Fund said in August that stablecoins’ market capitalization was close to $300 billion, after nearly tripling between 2021 and 2025, and had remained almost steady over the previous year. The fund said about 99% of these stablecoins are denominated in U.S. dollars. It also said transaction volumes exceeded $30 trillion in 2025, including $6.1 trillion in cross-border transactions according to some sources. The Bank for International Settlements estimated stablecoin-related payment flows at $390 billion that year. These figures show their expanding use in payments and transfers, alongside the dollar’s dominance in the sector.
The IMF warned that stablecoins could make it easier to circumvent capital flow management measures designed for regulated intermediaries. It said this could amplify outflows and put pressure on exchange rates and financial stability. These risks come as cross-border transaction values expand, while dollar-denominated stablecoins account for most of the market. In the United States, the Treasury Department published a proposed rule on August 17 to implement the GENIUS Act and invited public comment. The department said the law is expected to take effect on January 18, 2027, and will restrict the issuance of payment stablecoins in the United States to issuers with an appropriate federal or state license.
Tether Chief Executive Paolo Ardoino said that generating $1.5 billion in net operating profit while maintaining an excess reserve of nearly $8 billion provides a “strong foundation” for supporting USD₮, meeting redemptions and continuing to invest in infrastructure. In the company’s statement, Ardoino said its responsibility is to make USD₮ “reliable when people need it most,” including during periods of stress in markets and financial systems. In trading, the USDT/USD pair closed at $0.99899 on October 30 and then at $0.99965 on October 31. The Treasury Department set July 18, 2028, as the date when an additional restriction will begin, generally barring digital asset service providers from offering or selling payment stablecoins to people in the United States unless they are issued by a licensed issuer. The announced regulatory timeline therefore runs from the law’s expected effective date in 2027 to implementation of the additional restriction in 2028.