Tether Posts $1.5 Billion Profit in Third Quarter and $4.5 Billion in Nine Months
Key Facts
Tether reported operating net profit of $1.5 billion in the third quarter of 2026, bringing the total to $4.5 billion in the first nine months of the year. The company said quarterly profit was in line with the previous quarter, after posting $1.50 billion in the second quarter. The figures show that the nine-month result is cumulative, rather than profit for the third quarter alone. The company said U.S. Treasury bills and reverse repurchase agreements continued to provide most of its income. It also said USD₮ issuance remained broadly stable at $184 billion through the first three quarters of 2026 despite market volatility.
Tether said its direct and indirect holdings of U.S. Treasury bills totaled $132.4 billion at the end of the third quarter. That puts the bills at the top of the assets the company disclosed as part of its income base, alongside reverse repurchase agreements, which it said provided most of its revenue. The focus on Treasury instruments comes as USD₮ issuance remained at about $184 billion through the first three quarters, according to the company’s statement. In the second quarter, the company had reported token issuance of about $184.6 billion at the end of June, up approximately $446 million from the end of the first quarter. The comparison highlights differences in the figures and periods the company reported for each quarter, while describing issuance as broadly stable during the first nine months.
At the end of the second quarter, Tether reported that reserve assets exceeded liabilities by about $4.11 billion. The company describes this amount as the surplus of assets over liabilities, a measure separate from the value of any individual asset in the reserves. In its third-quarter announcement, the company linked growth in its reserve buffer to an increase of nearly double, but the figures presented here do not give a third-quarter value for the surplus. Bitcoin holdings alone therefore do not constitute an independent guarantee for USD₮ holders, nor are they sufficient on their own to establish redeemability at par. The International Monetary Fund said that holding high-quality liquid assets alone does not guarantee conversion at par, which also depends on operational capacity and market liquidity when needed.
The market backdrop shows the growing use of dollar-denominated stablecoins. The International Monetary Fund estimated their market value at about $300 billion in August 2026 and said it had nearly tripled between 2021 and 2025 before stabilizing relatively over the past year. The fund added that nearly 99% of stablecoins are denominated in U.S. dollars. It also warned that these coins could facilitate circumvention of capital flow management measures, potentially amplifying outflows and putting pressure on exchange rates and financial stability. The fund said redemption rules, reserves and access to central bank liquidity are among the regulatory choices that will shape the future of the monetary system, with proposals differing among the United States, the European Union and the United Kingdom.
Tether Chief Executive Paolo Ardoino said the company’s responsibility is to keep USD₮ reliable when needed, including when markets and financial systems come under pressure. In trading on October 30, 2026, EL7 data showed USDT/USD closing at $0.99899 per unit. The close came the day before the article was published, while the company’s financial data cited covered the period ending at the close of the third quarter. The reserve report was attested on October 30, while the financial figures it covers are dated September 30. The report provides data on assets and liabilities at a specific date, while reliance on liquidity and operational capacity for redemption remains among the issues highlighted by the International Monetary Fund.