Tether Excess Reserves Drop By Over $4 Billion Amid $1.5B Profit

Tether's excess reserves dropped by more than $4 billion during Q2, reducing the buffer above its stablecoin liabilities to around $4.11 billion.

This decline in excess reserves reflects shifts in asset allocation, including increased gold holdings, rather than a loss of backing.

Despite this drop, Tether confirmed that USDT remains fully backed and generated a net operating profit of $1.5 billion for the quarter.