Tether Raises Excess Reserves to $7.95 Billion in Third Quarter
Key Facts
Tether raised its excess of assets over liabilities to $7.95 billion at the end of the third quarter of 2026, from $4.1 billion at the end of the second quarter, a quarterly increase the company said amounted to $3.8 billion. In its statement on quarterly results, the company reported net operating profit of $1.5 billion during the period, matching the previous quarter's level. Net operating profit reached $4.5 billion in the first nine months of the year. Tether said total reserve assets reached $191.5 billion at quarter-end. These figures provide a snapshot of the surplus, assets and liabilities on that date, while issuance of USD₮ remained broadly stable at $184 billion during the first three quarters of 2026, according to the company.
The company said U.S. Treasury bills and reverse repurchase agreements continued to generate most of its income, tying the bulk of its reported earnings to Treasury instruments and repurchase agreements. Its direct and indirect holdings of U.S. Treasury bills stood at $132.4 billion at the end of the third quarter. That figure places Treasury bills among the main components of the reserve assets Tether reported. In its 2026 report, the Bank for International Settlements said fiat-backed stablecoin reserves are concentrated in dollar-denominated instruments. The bank added that their Treasury bill holdings had risen to levels comparable with those of large government entities and large money market funds.
The surplus reported at the end of the third quarter differs from the previous quarter's reading, when Tether said it had about $184.6 billion in tokens issued and its market share exceeded 60% of the stablecoin market. In its second-quarter disclosure, the company said it had reduced its exposure to secured lending by about $2.38 billion, or 15%. In the third quarter, it reported that the excess of assets over liabilities had risen to $7.95 billion, without the facts published here specifying how much each reserve component contributed to the quarterly increase. Comparing the two periods provides context for the change in the surplus, while the reserve figures remain tied to the end of each quarter. Tether reiterated that USD₮ issuance remained broadly stable at $184 billion during the first three quarters of the year.
Chief Executive Paolo Ardoino said, "Our responsibility is to ensure USD₮ remains reliable when people need it most, including when markets and financial systems are under pressure." The statement sets out the company's position on its responsibility for the stablecoin and does not guarantee a specific outcome under stress. On October 31, USD₮ closed at 0.99931 against the dollar, according to EL7 data. The price was close to the dollar on the publication date, but remains a market reading for that day. In the cryptocurrency market, the Associated Press said Bitcoin fell 3.2% to below $79,000 on the evening of October 29, during disruption linked to a hack of Binance. The agency added that Tether said it had frozen coins linked to the incident worth more than $1.5 billion.
The financial and reserve figures report prepared by BDO is dated and does not represent the company's financial statements, according to a correction regarding the report's scope. This means the published assets, liabilities and surplus describe the position at a point in time, not full financial results for the period. On the U.S. regulatory framework, the Treasury Department said the expected date for the GENIUS Act to take effect is January 18, 2027. The department added that issuing a payment stablecoin in the United States will generally require a federal or state license. The date places licensing requirements among the upcoming developments relevant to stablecoin issuers in the United States.