Tether Prints Money Amid Crypto Turmoil, Excess Reserve Buffer Contracts
Tether's profit engine continues to chug along, despite turmoil in the crypto market. The company behind USDT reported a net operating profit of $1.5B for Q2 2026, up from $1.04B in Q1.
The profit model relies on Tether taking dollars deposited by users, issuing USDT, and parking collateral primarily in U.S. Treasuries and repurchase agreements. When interest rates are elevated, this model becomes a reliable money-printing machine.
Tether held total assets of $187.75B against liabilities of $183.64B as of June 30, 2026, leaving an excess reserve buffer of $4.11B. This buffer is down from $8.23B at the end of Q1, a contraction worth watching.
Tether's dominance in the stablecoin market grew during Q2, with USDT in circulation reaching roughly $184.6B and exceeding 60% market share. The company also diversified its assets by adding 14 metric tons of gold, bringing its total physical gold holdings above 146 metric tons.