- Tether recorded $1.5 billion in Q2 operating profit as USDT supply grew to $184.6 billion despite a weaker stablecoin market.
- Treasury investments supported the company’s earnings, while gold holdings increased as part of its reserve diversification strategy.
Tether reported a strong second quarter, with operating profit reaching $1.5 billion as demand for USDT continued to grow. The stablecoin issuer said its circulating supply increased even as the broader stablecoin market faced a contraction during the period.
The company’s latest reserve attestation, prepared with assurance from BDO, showed that Treasury bills and repurchase agreements remained the main drivers of earnings. Tether’s financial performance highlights how higher interest rates have continued to support revenue from its large cash reserves.
Tether Reserves Remain Backed by Treasury Assets
Tether held $187.75 billion in total assets against $183.64 billion in liabilities at the end of June. This left the company with a $4.11 billion reserve buffer supporting USDT.
The firm reported $183.62 billion in issued tokens as liabilities, with USDT supply reaching approximately $184.6 billion by the end of Q2. This marked an increase of about $446 million compared with the previous quarter.
Treasury bills remained the largest part of Tether’s reserves, with $114.96 billion held directly in U.S. government debt. Overnight reverse repos accounted for $18.63 billion, while term reverse repos added another $6.99 billion.
Cash equivalents and short-term deposits totaled $140.64 billion, making up the majority of Tether’s reserve assets.
USDT Maintains Stablecoin Market Lead
Despite slower growth across the stablecoin sector, USDT continued to dominate the market. Tether said its stablecoin maintained more than 60% of total stablecoin supply.
Market data later placed USDT’s dominance slightly lower at around 59%, depending on measurement methods. However, USDT remained the largest stablecoin by market capitalization.
The company’s supply growth came during a period when the overall stablecoin market showed signs of weakness. Tether’s continued expansion reflected strong demand for USDT across trading and digital asset markets.
Tether Expands Gold Holdings While Bitcoin Reserves Decline
Tether also increased its exposure to gold during the quarter as part of its reserve diversification strategy. The company added 14 metric tons of physical gold, bringing total bullion holdings above 146 metric tons.
Gold reserves were valued at $18.84 billion at the end of June. Meanwhile, Tether’s Bitcoin holdings were valued at $5.80 billion based on a Bitcoin price of $58,642.15.
The company also reduced secured lending exposure by $2.38 billion, a decline of 15%. However, secured loans still represented $13.45 billion in assets.
Interest Income Continues to Drive Tether Growth
Tether’s Q2 results show how Treasury investments continue to generate significant income for the company. Short-term government securities remained a key source of profitability as interest rates stayed elevated.
Although Tether recorded a $3.17 billion financial loss related to asset movements, the company received $943 million in net capital inflows during the first half of the year.
The next reserve report will cover September 30, 2026. Investors will be watching whether USDT supply growth and Treasury income remain strong in the coming quarters.
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