Tether raked in $1.5 billion in net profit during the second quarter of 2026, marking a 44% jump from Q1’s $1.04 billion. The surge came amid turbulent global markets, with earnings mainly propelled by U.S. Treasury bonds and repurchase agreements. Meanwhile, the company boosted its gold reserves by 10.5%, raising holdings from 132.2 tons to 146 tons.
USDT Usage Soars in Emerging Markets
Tether’s CEO Paolo Ardoino highlighted that the USDT user base surpassed 650 million worldwide, with the fastest growth occurring in emerging economies. Geopolitical tensions appear to be driving this surge, especially in Latin America and Africa. For example, USDT trading volume on Binance in Venezuela reached $1.4 billion, rivaling the nation’s oil exports and foreign exchange reserves.
In Bolivia, USDT has become a popular alternative to the U.S. dollar amid growing demand, prompting discussions about adopting it as legal tender. Across Africa, USDT is widely used for remittances and as a hedge against currency inflation. Tether is also exploring tokenization of local securities in Kenya to facilitate USDT settlements, a move that could expand to other countries if regulatory hurdles can be overcome.
Market Cap Declines Despite Profit Growth
On the other hand, USDT’s market capitalization slipped by nearly $7 billion from its May peak of $190 billion to $183.5 billion. Tether’s US-focused stablecoin, USAT, remains small with a market cap of $185 million. The overall stablecoin sector also contracted 5% in Q2, reflecting continued headwinds in the crypto market.
This material is informational and does not constitute financial advice.
