news - tether has reported $1.5 billion in net operating profit for the third quarter of 2026, bringing its total profit for the first nine months of the year to $4.5 billion

the company also reported total reserve assets of approximately $191.45 billion against liabilities of $183.50 billion as of september 30

this leaves tether with around $7.95 billion in excess reserves, almost double the $4.1 billion cushion it reported at the end of the second quarter

in simple terms, tether currently reports having more assets than the value of its outstanding stablecoin liabilities

where is tether keeping its reserves?

one of the most interesting parts of the report is how tether manages its reserves

u.s. treasury bills remain its largest holding, with approximately $122.84 billion directly invested in them

including reverse repurchase agreements, its direct and indirect exposure to u.s. treasury bills reaches around $132.4 billion

other reported holdings include:

• $19.08 billion in precious metals, mainly physical gold

• $8.37 billion in bitcoin

• $14.18 billion in secured loans

• $6 billion in other investments

• $4.18 billion in publicly traded equities

cash equivalents and other short-term deposits accounted for approximately $139.58 billion, representing around 73% of total reserves

the figures were included in an independent attestation prepared by accounting firm bdo, covering tether's financial position on september 30

one important detail is that an attestation is not the same as a complete quarterly financial audit. it provides an assessment of the company's reported financial position at a particular point in time

tether's role in the binance hack

tether also recently played a role in the response to the reported binance security incident

tether ceo paolo ardoino said the company froze more than $1.567 billion in usdt following the incident

this highlights another important feature of centralized stablecoins: their issuers can freeze certain tokens when responding to suspected criminal activity or working with authorities

my take - what stands out to me is not just the $1.5 billion profit, but how much of tether's reserve portfolio is connected to traditional financial markets

holding more than $122 billion directly in u.s. treasury bills is a massive position

it also shows how stablecoins have become connected to the traditional financial system rather than operating completely separately from it

another interesting point is tether's bitcoin and gold exposure

i like seeing a stablecoin issuer diversify its reserve assets, although these holdings also introduce different types of market and liquidity risks

the increase in excess reserves from approximately $4.1 billion to $7.95 billion is also encouraging on paper

however, i would still like to see more frequent and comprehensive financial disclosures so users can better understand the company's overall financial position

my final thoughts

tether continues to generate billions in profit while maintaining a substantial reserve portfolio

its latest figures show a growing cushion between assets and liabilities, alongside significant exposure to u.s. treasury bills, gold and bitcoin

but i think transparency is just as important as profitability when it comes to a company responsible for one of the largest stablecoins in the crypto market

i'll be keeping an eye on how tether manages its reserves and whether it continues expanding its financial disclosures

what do you think?

does tether's growing reserve cushion make you more confident in usdt, or would you still prefer stablecoins with more frequent and comprehensive audits?

disclaimer: this article is for informational purposes only and is not financial advice. always do your own research before making any investment decisions.