Tether, the issuer of the largest stablecoin by market share, generated approximately $1.5 billion in net operating profit during the second quarter of 2026. The results, detailed in the company’s latest quarterly attestation prepared by BDO, show continued strength driven primarily by interest income from U.S. Treasury securities and repurchase agreements.

As of June 30, Tether held about $187.75 billion in total assets against $183.64 billion in liabilities, producing a reserve surplus of roughly $4.11 billion. The circulating supply of USDT rose by $446 million over the quarter to reach $184.6 billion, giving the token more than 60 percent of the global stablecoin market, which stood near $307 billion.

Earnings Powered by Short-Duration Treasuries

Most of the quarter’s operating profit came from returns on short-duration, high-quality liquid assets. Tether has maintained a large position in U.S. Treasury bills and related repo agreements, capitalizing on elevated short-term interest rates. The company ranks among the largest non-governmental holders of U.S. Treasury securities worldwide.

During the same period, Tether reduced its secured lending exposure by approximately $2.38 billion, or 15 percent. The firm also added 14 metric tons of physical gold, bringing total gold holdings to more than 146 tons. These moves supported the expansion of the reserve buffer while keeping the portfolio concentrated in liquid instruments.

USDT Grows Against Broader Market Contraction

While the overall stablecoin sector experienced a softer quarter and a decline in total market capitalization, USDT circulation continued to expand. The increase of $446 million occurred alongside growth of more than 30 million users in Tether’s global base. The company’s market share advanced past 60 percent despite the industry-wide slowdown.

Tether stated that the majority of assets backing USDT remain invested in short-term U.S. Treasuries, repurchase agreements, and other highly liquid government-backed instruments. The attestation confirmed that reserves exceeded liabilities by $4.11 billion at quarter-end, providing a cushion for potential redemptions.

Ongoing Audit and Infrastructure Focus

The company noted that its Big Four audit process continued throughout the quarter. Parallel efforts focused on expanding financial and technology infrastructure while preserving liquidity. Tether has positioned its reserve strategy around short-duration assets to sustain earnings and maintain coverage above outstanding token liabilities.

CEO Paolo Ardoino said the results demonstrate liquidity, discipline, and scale that allow the firm to remain resilient across market cycles while serving hundreds of millions of users. He contrasted the company’s approach with broader financial industry emphasis on certain high-valuation technology sectors, stating that Tether is directing resources toward technologies that expand access to financial services.

The attestation underscores Tether’s continued ability to generate substantial income from its Treasury-heavy reserve portfolio while expanding token supply and physical gold holdings in a challenging environment for the wider stablecoin sector.