The stablecoin issuer USDT saw its reserve surplus nearly double to $7.95 billion by the end of September, alongside a reported $1.5 billion in operating profit for the third quarter. While this expanded cushion bolsters the headline reserve amount, it still falls short of the total value of Tether’s Bitcoin portfolio.
These figures were released alongside a quarterly attestation compiled by BDO, offering USDT holders a fresh look at the firm’s balance sheet as of the end of September.
Tether’s reserve surplus rose from $4.1 billion to $7.95 billion
At the close of September, Tether reported $191.5 billion in assets against $183.5 billion in liabilities, resulting in a surplus of $7.95 billion. This marked an increase from the $4.1 billion recorded at the end of June, as detailed in an account of the attestation by Cointelegraph.
This surplus represents the margin by which total assets exceed liabilities rather than quarterly earnings. Furthermore, the attestation captures Tether’s financial standing strictly at the conclusion of September, instead of tracking daily fluctuations throughout the entire quarter.
Treasury exposure drove most of Tether’s operating income
Operating profit for Tether hit $1.5 billion in Q3, bringing the total for the first nine months of 2026 to $4.5 billion. The corporation attributed these earnings primarily to investments in US Treasury bills and reverse repurchase agreements.
Direct and indirect holdings of Treasury bills reached $132.4 billion by the end of the quarter. According to August Treasury Department metrics cited by Cointelegraph, this exposure is roughly equivalent to South Korea’s $134.2 billion holdings of US government debt and surpasses the United Arab Emirates’ $116.1 billion. This comparison is strictly based on total volume rather than credit standing.
Bitcoin reserves now exceed the USDT reserve buffer
Valued at $8.37 billion at the end of September, Tether’s Bitcoin reserves rose from roughly $5.8 billion at the end of June. Consequently, these holdings surpassed the $7.95 billion surplus, leaving the buffer vulnerable to fluctuations in the market price of reserve assets.
DefiLlama data cited by Cointelegraph indicates that USDT commands roughly a 60% share of the $297.3 billion stablecoin ecosystem. Additionally, CEO Paolo Ardoino announced on October 30 that the user base for USDT has crossed 700 million, with growth heavily weighted toward developing markets.
A larger surplus does not remove asset-price and transparency risks
Gold and Bitcoin combined accounted for $27.45 billion of the company’s reserves. Calculations from BeInCrypto show that a simultaneous 29% decline in the value of these assets would completely wipe out the $7.95 billion surplus. On another front, $47.7 billion (or 25% of total reserves) was held across gold, Bitcoin, secured loans, and alternative investments, while $139.6 billion was kept in cash, reverse repos, and Treasuries.
The valuations provided by BDO assume standard operating conditions rather than a stressed market environment. Although Tether reported in August that KPMG US finalized its inaugural independent financial statement audit, BeInCrypto pointed out that these audited documents were not publicly disclosed.
This distinction remains significant: the BDO report provides a snapshot of the end of the quarter, whereas the KPMG engagement involved a comprehensive financial statement audit. Tether’s surplus buffer has fluctuated between $4.11 billion and $8.23 billion over a one-year span while circulating USDT remained steady near $183.5 billion. The ultimate test will be whether this surplus can withstand periods of acute market distress.
FAQ
When does the latest reserve figure apply?
The $7.95 billion surplus reflects Tether’s position at the end of September 2026. It does not describe the company’s balance sheet on October 30.
What did Tether say about its user base?
CEO Paolo Ardoino said on October 30 that USDT had passed 700 million users. He said adoption was concentrated in emerging markets.
How does Tether’s Treasury exposure compare with country holdings?
Tether’s $132.4 billion in direct and indirect Treasury bill exposure was close to South Korea’s $134.2 billion in US government debt. It exceeded the UAE’s $116.1 billion, based on August figures.
What makes the reserve surplus vulnerable to market moves?
Bitcoin and gold together accounted for $27.45 billion in reserves. BeInCrypto’s stress calculation found that a joint 29% decline would consume the reported surplus.
What is the difference between the BDO attestation and the KPMG audit?
BDO prepared the quarterly attestation covering Tether’s September-end position. Tether said KPMG US completed a full independent financial statement audit in August, but the audited statements were not made public.
What types of assets make up the majority of Tether’s holdings?
The vast majority of reserves—$139.6 billion—are held in cash, reverse repurchase agreements, and Treasury bills.
This article is for information only and is not financial advice.
