MV Capital | Tether Doubles Reserve Buffer to $7.95 Billion as Q3 Profit Hits $1.5 Billion

Tether released its third-quarter financial attestation on October 30, showing $1.5 billion in net operating profit and a nearly doubled excess reserve cushion

Reserve Growth Strengthens Backing for USDT

Tether International reported total reserve assets of $191.5 billion at the end of September 2026, compared with $183.5 billion in liabilities. The resulting excess buffer stood at $7.95 billion, up from $4.1 billion three months earlier.

The company’s attestation, prepared by BDO, noted that most holdings remain in liquid short-term instruments. Cash equivalents and short-term deposits accounted for $139.58 billion, or roughly 73 percent of the total portfolio. Direct and indirect U.S. Treasury bill holdings reached $132.4 billion, with $122.84 billion held outright.

Other assets included $19.08 billion in physical gold bars and $8.37 billion in Bitcoin, valued at fair market prices. Secured loans added $14.18 billion, with smaller positions in public equities, corporate bonds and other investments.

Reserve Composition at September 30, 2026
U.S. Treasury bills and cash equivalents: ~$139.58 billion
Physical gold: $19.08 billion
Bitcoin: $8.37 billion
Secured loans: $14.18 billion
Other investments: $6 billion

Profit Driven by Treasury Yields and Repos

Net operating profit for the quarter was $1.5 billion, unchanged from the prior period. Income primarily came from U.S. Treasury bills and reverse repurchase agreements. Cumulative operating profit for the first nine months reached $4.5 billion.

USDT issuance remained broadly steady at about $184 billion through September. The stablecoin continues to account for roughly 60 percent of the global $297.3 billion stablecoin market.

Key Figures from Q3 Attestation
Total assets: $191.5 billion
Liabilities: $183.5 billion
Excess reserves: $7.95 billion (nearly double June’s $4.1 billion)

CEO Stresses Liquidity and Redemption Readiness

Tether CEO Paolo Ardoino highlighted the company’s focus on maintaining confidence in its flagship token during market stress. The growing surplus provides additional financial resources beyond immediate redemption needs.

Our responsibility is to make sure USD₮ remains dependable when people need it most, including when markets and financial systems come under pressure.Paolo Ardoino, Tether CEO

Ardoino also noted that the reserve strategy aims to preserve liquidity for redemptions while supporting broader infrastructure. The report comes after Tether completed its first full independent audit of 2025 financial statements by KPMG U.S., though those audited results have not yet been published.

Bitcoin Holdings Rise as Portfolio Diversifies

Bitcoin reserves climbed to $8.37 billion from approximately $5.8 billion at the end of June. The increase reflects ongoing allocation adjustments within the broader reserve mix.

Tether’s Treasury exposure places its U.S. government debt holdings on par with major foreign sovereign positions. The $132.4 billion figure exceeds that of the United Arab Emirates and is close to South Korea’s $134.2 billion.

Transparency Remains Central to Operations

The latest BDO attestation provides a structured snapshot of assets and liabilities. Tether continues to publish these reports to address ongoing questions about reserve adequacy and reporting practices.

Separate actions following the October 29 Binance incident included freezing more than $1.5 billion in USDT linked to suspicious outflows and blacklisting addresses tied to smaller volumes. The company’s balance sheet, however, showed no material impact from those events.

Future attestations will continue to track changes in yields, issuance levels and the composition of the reserve portfolio amid evolving market conditions.