Tether Posts $1.5B Q2 2026 Profit, Says Reserve Buffer Tops $4.11B

Tether International released its Q2 2026 reserves and financial report, verified by audit firm BDO, reporting $1.5 billion in net operating profit and a $4.11 billion reserve buffer above liabilities. As of June 30, 2026, USDT in circulation climbed to $184.6 billion. Tether said the increase came even as total stablecoin market capitalization fell, lifting USDT's market share to above 60%. The company reported total assets of $187.75 billion versus liabilities of $183.64 billion. Of those liabilities, $183.62 billion were tied to issued tokens. Tether said the $4.11 billion gap represents additional reserves. Tether stated that reserves remain concentrated in highly liquid assets, alongside the following exposures: - Precious metals: $18.84 billion - Bitcoin: $5.8 billion - Public equities: $3.76 billion - Other investments: $5.24 billion - Secured loans: $13.45 billion During the quarter, Tether said it reduced its secured lending portfolio by about $2.38 billion, or 15%. Profit was driven primarily by the firm's US Treasury portfolio and repo activity, with additional support from gold. CEO Paolo Ardoino said the reserve approach was stress-tested by sharp moves in gold and bitcoin markets, adding that USD₎ remained fully backed throughout the period and that reserves continued to exceed liabilities by $4.11 billion. He also described Tether as one of the largest buyers of US Treasuries and said the company's global user base continues to expand. Tether also increased its physical gold holdings, purchasing 14 tonnes in Q2 to take total gold reserves to more than 146 tonnes. The update follows a surge in gold prices that pushed the market capitalization of Tether Gold (XAUT) above $3 billion. Tether said demand for tokenized gold has risen amid global macro uncertainty. The Q2 publication comes a few months after Tether reported $1.04 billion in net profit for Q1, when excess reserves reached a record $8.23 billion and US Treasury holdings totaled $141 billion. Separately, Tether recently said it will wind down the Alloy by Tether platform and discontinue support for the aUSDT stablecoin, citing a plan to focus on Tether Gold and other core products. On regulation, the company said it is continuing to adapt to new requirements. After US President Donald Trump signed the GENIUS Act, Tether has until July 18, 2028, to bring USDT into compliance with the new stablecoin law. The post Tether Revealed Structure of USDT's Backing and Increased Its Gold Reserves: Q2 Recap was first published on INCRYPTED.