Tether’s $7.95B Reserve Surplus Nearly Doubles as Q3 Profit Reaches $1.5B

The stablecoin issuer USDT saw its reserve surplus nearly double to $7.95 billion by the close of September, alongside a third-quarter operating profit of $1.5 billion. While this expanded cushion bolsters the primary reserve figure, it remains trailing behind Tether’s total Bitcoin holdings.

These figures were released alongside a quarterly attestation compiled by BDO, providing holders of USDT with an updated perspective on the firm’s balance sheet as of the end of September.

Tether’s reserve surplus rose from $4.1 billion to $7.95 billion

At the conclusion of September, Tether reported $191.5 billion in assets against $183.5 billion in liabilities, resulting in a surplus of $7.95 billion. This marked an increase from the $4.1 billion recorded at the end of June, as detailed in Cointelegraph’s review of the attestation.

This surplus represents the amount by which total assets surpass liabilities and is distinct from quarterly profit. Furthermore, the attestation captures Tether’s financial standing strictly at the end of September, rather than summarizing daily operations throughout the quarter.

Treasury exposure drove most of Tether’s operating income

During the third quarter, Tether’s operating profit hit $1.5 billion, bringing its total for the first nine months of 2026 to $4.5 billion. The organization attributed these gains primarily to investments in U.S. Treasury bills and reverse repurchase agreements.

At the quarter’s close, the company’s direct and indirect holdings of Treasury bills reached $132.4 billion. According to August Treasury Department data referenced by Cointelegraph, this exposure is comparable to South Korea’s $134.2 billion stake in U.S. government debt and surpasses the United Arab Emirates’ $116.1 billion. This metric reflects the volume of holdings rather than credit ratings.

Bitcoin reserves now exceed the USDT reserve buffer

Valued at $8.37 billion at the end of September, Tether’s Bitcoin reserves grew from roughly $5.8 billion at the end of June. Consequently, these holdings surpassed the $7.95 billion surplus, leaving the buffer susceptible to fluctuations in the market price of its reserve assets.

Data from DefiLlama, also cited by Cointelegraph, indicates that USDT represented roughly 60% of the $297.3 billion stablecoin sector. Additionally, CEO Paolo Ardoino stated on October 30 that USDT adoption had crossed the threshold of 700 million users, with growth heavily weighted in emerging markets.

A larger surplus does not remove asset-price and transparency risks

Combined, gold and Bitcoin accounted for $27.45 billion of the company’s reserves. Calculations from BeInCrypto show that a simultaneous 29% decline in the value of these two assets would completely wipe out the $7.95 billion surplus. On a broader scale, cash, Treasuries, and reverse repos totaled $139.6 billion, while gold, Bitcoin, secured loans, and alternative investments made up $47.7 billion, or 25% of the overall reserves.

BDO’s valuation models assume standard trading environments rather than periods of financial distress. BeInCrypto also pointed out that while Tether reported in August that KPMG US had finalized its initial comprehensive independent financial statement audit, those audited findings were never published.

This distinction is significant: the BDO document offers a snapshot of the balance sheet at the end of the quarter, whereas the KPMG project was characterized as a full financial statement audit. Tether’s surplus has fluctuated between $4.11 billion and $8.23 billion over the span of a year, while circulating USDT remained near $183.5 billion. The upcoming challenge will be observing whether this surplus can withstand potential market turbulence.

FAQ

When does the latest reserve figure apply?

The $7.95 billion surplus reflects Tether’s position at the end of September 2026. It does not describe the company’s balance sheet on October 30.

What did Tether say about its user base?

CEO Paolo Ardoino said on October 30 that USDT had passed 700 million users. He said adoption was concentrated in emerging markets.

How does Tether’s Treasury exposure compare with country holdings?

Tether’s $132.4 billion in direct and indirect Treasury bill exposure was close to South Korea’s $134.2 billion in US government debt. It exceeded the UAE’s $116.1 billion, based on August figures.

What makes the reserve surplus vulnerable to market moves?

Bitcoin and gold together accounted for $27.45 billion in reserves. BeInCrypto’s stress calculation found that a joint 29% decline would consume the reported surplus.

What is the difference between the BDO attestation and the KPMG audit?

BDO prepared the quarterly attestation covering Tether’s September-end position. Tether said KPMG US completed a full independent financial statement audit in August, but the audited statements were not made public.

This article is for information only and is not financial advice.