What happened
Net operating profit of the USDT issuer fell from $4,9illion to $1,5illion amid weakening financial results.
Why it matters
The dynamics of Tether's reserves and profits directly impact confidence in the market's largest stablecoin, upon which the liquidity of most crypto exchanges and the stability of trading pairs depend.
Tether, the issuer of the USDT stablecoin, reported a significant decline in its excess reserves of more than 4illion in the second quarter of this year. According to data from independent reports, the organization's net operating profit dropped to 1,5illion, representing a sharp contrast to the 4,9illion figure recorded for the same period in 2025.
Despite a general weakening of the stablecoin market and pressure within the crypto industry, Tether's reserve surplus still grew to 4,11illion. This growth occurred against the backdrop of an increased supply of USDT tokens, facilitated by the company's investments in U.S. Treasury bonds, which became the primary driver of profit formation during the reporting period.
The substantial reduction in net profit alongside a simultaneous increase in the reserve surplus indicates a shift in the issuer's revenue structure. The financial results for the second quarter demonstrate that even under less favorable market conditions, the asset backing model continues to generate significant volumes of liquidity, although the pace of accumulation of excess funds has slowed.
Confirmed facts
- Tether's excess reserves decreased by more than 4illion in the second quarter.
- Tether's net operating profit in the second quarter amounted to 1,5illion.
- In the second quarter of 2025, Tether's net profit was 4,9illion.
- Tether's reserve surplus grew to 4,11illion in the second quarter.
- The growth in reserves occurred despite a weakening stablecoin market.
- Profits were driven by holdings of U.S. Treasury bonds.
Context
The reporting covers the second quarter of 2026. Data was obtained from meta-descriptions of independent publications The Block and Cointelegraph, published in late July 2026.
What remains unknown
- What is the exact structure of assets backing the remaining portion of reserves besides Treasury bonds?
- Will the slowing growth rate of excess reserves lead to a change in the issuer's monetary policy?
- How exactly did macroeconomic conditions affect portfolio yields compared to previous periods?
Editorial context
Confidence: medium
A likely consequence will be increased attention from regulators and auditors regarding the transparency of reserve formation amidst crypto market volatility. The next observable signal will be the publication of a detailed audit report with a breakdown by asset type. Material uncertainty remains regarding the long-term sustainability of current portfolio yields given potential changes in Federal Reserve interest rates.