“We remained one of the world’s largest buyers of U.S. Treasuries,” said CEO Paolo Ardoino, highlighting Tether’s strategic moves despite volatile markets in Q2 2026. The crypto giant posted a net operating profit of $1.5 billion for the quarter, even as its excess reserves shrank by half to $4.11 billion, down from $8.23 billion at the end of Q1. This reduction came amid sharp swings in gold and Bitcoin prices, testing the resilience of its reserve buffer.
Tether’s total issuance of USD₮ surged to $184.6 billion, pushing its market share in the stablecoin sector past the 60% mark. While some investors might focus on the halving of excess reserves, the company’s asset base still comfortably covers its liabilities. At quarter’s close, total assets stood at $187.75 billion against liabilities of $183.64 billion, with the majority of liabilities tied to issued digital tokens.
Meanwhile, the company slashed its secured lending exposure by $2.38 billion, about 15% less than before, while boosting its physical gold holdings to over 146 tons. These moves appear aimed at balancing liquidity and safeguarding assets amid market turbulence. Surprisingly, despite these shifts, Tether’s USDT user base keeps expanding, hitting over 650 million users, signaling growing demand for its stablecoin.
The financial results also hint at a complex picture. Though net operating profit was strong, a first-half full figure showed a near $3.17 billion loss, suggesting significant unrealized market value changes, possibly on its Treasury and crypto holdings. Yet, Ardoino emphasized the company’s focus on short-duration, high-quality liquid assets like U.S. Treasuries. This cautious stance may explain how Tether navigates volatility while maintaining a dominant stablecoin presence.
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