Tether reported a third-quarter net operating profit of $1.5 billion while its excess reserves climbed to approximately $8 billion, nearly double the amount held three months prior. At the close of September, these excess reserves stood at $7.95 billion against total liabilities of $183.50 billion, with direct and indirect U.S. Treasury bill holdings accounting for $132.4 billion of the portfolio.
The reserve composition included $19.08 billion in physical gold and $8.37 billion in Bitcoin, contributing to a nine-month operating profit of $4.5 billion driven primarily by Treasury bills and reverse repos. Tether's announcement on Oct. 30 stated that total reserve assets reached $191.45 billion as of Sep. 30, figures verified by an attestation prepared by BDO covering the issuer's financial data and the assets backing its dollar-linked tokens.
Reserve Composition Shifts Toward Cash Equivalents
Despite operating profits remaining flat compared to the prior quarter and USDT issuance holding steady around $184 billion throughout the first nine months of 2026, the reserve cushion continued to expand. As reported by the report during its second-quarter earnings review, Tether's balance sheet at the end of June showed $187.75 billion in assets offsetting $183.64 billion in liabilities, which resulted in excess reserves of $4.11 billion.
By the close of September, asset values had increased by approximately $3.7 billion while liabilities declined slightly; this shift produced a buffer of $7.95 billion, marking a rise of roughly 94% from June's reported level. When measured against total liabilities, the most recent cushion amounted to about 4.34%, up from approximately 2.24% three months prior, meaning assets were valued near $104.34 for every $100 in liabilities at quarter-end.
Paolo Ardoino, the chief executive of Tether, stated in a recent declaration that the firm's foremost duty is guaranteeing the reliability of USD₮ for its users during critical moments. He pinpointed the need to sustain liquidity for redemption processes and to secure funds for infrastructure backing as key elements of the organization's reserve approach. The financial documentation associated with this update shows $183.47 billion in obligations tied to the issued digital tokens, noting that accounting rules treat these tokens as debts payable immediately at their agreed-upon redemption price.
According to the detailed reserve statement, holdings of U.S. Treasury bills directly owned by the entity total $122.84 billion, featuring a weighted average maturity period under 90 days. Short-term borrowing arrangements involving overnight reverse repurchase agreements made up $9.52 billion, whereas term reverse repos summed to $7.18 billion. When adding minor amounts of non-U.S. Treasury bills and bank deposits, the aggregate for cash, cash equivalents, and short-term deposits arrived at $139.58 billion.
Tether's reserve composition included approximately 72.9% allocated to a specific category calculated from the report, while holdings outside those instruments comprised $19.08 billion in physical gold bars meeting London Bullion Market Association standards and Bitcoin valued at $8.37 billion based on a September 30 price of $83,621.23 per coin.
Together, gold and Bitcoin accounted for $27.45 billion, which constituted approximately 14.3% of the total reserve assets, marking a rise from the combined $24.64 billion noted at the end of June; the September report applies fair value to both holdings, so their stated dollar figures reflect market prices existing on the reporting date.
Secured loans made up the bulk of Tether's investment holdings at $14.18 billion, with additional positions including $6 billion in other investments, $4.18 billion in public equities, and $63.9 million in corporate bonds. The firm notes that these loans are overcollateralized, utilizing margin calls and liquidation protocols to keep collateral coverage secure, whereas Treasury bills and reverse repos generated the majority of operating income for the first nine months.
Distinct from the equity reconciliation which recorded a $1.66 billion financial result for the first nine months alongside $519 million in net capital outflows, Tether announced a separate operating profit of $4.5 billion for the same period. During this timeframe, opening equity stood at $6.81 billion before rising to $7.95 billion by the end of September.
Gold and Bitcoin Holdings Reach New Valuations
Unlike Tether's results, Circle's second-quarter data revealed $668 million in reserve income and $48 million in net profit, with the USDC issuer recording $701 million in combined revenue and reserve earnings while facing $412 million in expenses related to distribution, transactions, and other items. The company credited a 5% year-over-year increase in its reserve income to a 25% expansion in average USDC circulation, though this gain was partially counterbalanced by a decline of 66 basis points in the reserve return rate.
Regarding accounting developments within Tether's September report, the company's footnote indicates that shareholders approved audited 2025 financial statements on Aug. 13, 2026. Management subsequently aligned comparative figures and opening equity with those statements, incorporating adjustments for subsequent events and changes in accounting policies.