Tether, the issuer of USDT, reported $1.5 billion in net operating profit in the third quarter of 2026, while its reserves in excess of liabilities rose to $7.95 billion.
According to a third-quarter reserve attestation report prepared by BDO and cited by Wu Blockchain on October 30, Tether’s total reserve assets stood at $191.5 billion as of September 30, while its liabilities stood at $183.5 billion. USDT issuance was reported at approximately $184 billion on the same date.
The most notable change in the report was in the reserves the company holds above its liabilities. The excess reserves, which stood at $4.1 billion at the end of the second quarter, nearly doubled to $7.95 billion by the end of September.
Additional reserves backing USDT grew
Excess reserves refer to the portion of total reserve assets that exceeds liabilities. Their growth shows that the financial buffer held in addition to liabilities in the pool of assets backing USDT has expanded.
Net operating profit in the third quarter remained roughly at the same level as in the previous quarter. Tether thus reported $1.5 billion in net operating profit for the July-September period and a total of $4.5 billion in net operating profit for the first nine months of the year.
Where did the billions in earnings come from?
The main sources of operating profit in the first nine months were U.S. Treasury bills and reverse repurchase agreements. Reverse repurchase agreements allow cash to be invested for the short term against securities collateral.
The company’s direct and indirect investments in U.S. Treasury bills totaled $132.4 billion. This figure highlights the significant role Treasury bills play in Tether’s reserve structure and revenue generation.
Not investment advice.