Tether's Reserve Cushion Plummets by Half Amid Comprehensive Loss Exceeding $4 Billion

Tether's excess reserves have plummeted by 50% since March, from $8.23 billion to $4.11 billion as of June 30, according to a recent reserve attestation.

This drop in the financial cushion raises concerns about the stability of the world's largest stablecoin, USDT, which has a market capitalization of over $80 billion.

Tether's income statement appears healthy on the surface, with a net operating profit of $1.5 billion in Q2. However, the comprehensive financial result for the first six months shows a negative $3.17 billion, paired with a previously reported Q1 net profit of about $1.04 billion.

This translates to a comprehensive quarterly loss that comfortably exceeded $4 billion, with the exact breakdown of what drove this swing remaining opaque.