Tether's reserve strategy has withstood the test of volatility: operating profit and a record liquidity buffer
The issuer of the largest stablecoin USDT ended the second quarter of 2026 with a net operating profit of about $1.5 billion, and the company's reserve buffer exceeded $4.11 billion. These figures are not just dry statistics, but direct proof that the conservative asset management model works even in the midst of a harsh market storm.
The report for the reporting period recorded assets of $187.75 billion against liabilities of $183.64 billion. Thus, the reserve surplus amounted to $4.11 billion, providing a significant safety cushion for USDT holders. The key profit driver was the portfolio of U.S. Treasury bonds and repo operations—a strategy focused on the most liquid and short-term instruments, which I have been analyzing for several years now.
Reduction of leverage and growth of market share
Special attention deserves the company's decision to reduce the volume of secured lending by approximately $2.38 billion, or 15% compared to the previous quarter. This is a deliberate step toward simplifying the reserve structure and increasing its transparency. Against the backdrop of an overall decline in the stablecoin market capitalization, Tether managed to increase its share to a level exceeding 60%, indicating sustained demand for USDT from both retail traders and institutional players.
Gold reserves and diversification
The company continues to actively diversify its reserves: during the quarter, 14 metric tons of physical gold were purchased, bringing the total stock to an impressive 146 tons. Amid global geopolitical instability and inflationary risks, gold is becoming a strategic asset that enhances Tether's resilience to any scenarios of market fluctuations and mass USDT redemptions.
CEO Paolo Ardoino emphasized that the second quarter was a real stress test for the reserve strategy. The company not only maintained but also strengthened its position: the user base grew by more than 30 million people during the quarter. At the same time, preparations continue for an audit by one of the "Big Four" firms, which will be an important step toward increasing market confidence.
My view: Tether demonstrates a discipline in reserve management that is rare for the crypto industry. Reducing credit risk and increasing the share of highly liquid assets is the right direction that will strengthen trust in USDT in the long term. However, the key test remains the independent audit: until it is completed, the market will maintain a certain degree of skepticism.