Tether posted an operating profit of $1.5 billion for the third quarter of 2026. The results coincided with a surge in excess cash reserves, which nearly doubled to $7.95 billion, nearing the $8 billion threshold. The excess reserves figure was disclosed in the latest attestation report compiled by independent accounting firm BDO.
Beyond its excess cash reserves, Tether recorded direct crypto asset holdings on its balance sheet. Tether’s Bitcoin reserve portfolio was valued at $8.37 billion at the end of September. These Bitcoin reserves complement the BDO-attested excess reserves within the company’s reported asset structure.
US Treasury Holdings Rivaling Sovereign Nations
The majority of Tether’s capital deployment remains in conventional financial instruments. Tether’s exposure to US government debt is now comparable to that of sovereign nations. US Treasury Department data as of August showed Tether’s Treasury holdings surpassed the United Arab Emirates’ $116.1 billion portfolio and are approaching South Korea’s level of $134.2 billion.
This capital dominance is also directly reflected in the market share of its issued token. According to DefiLlama data, USDT’s market capitalization currently accounts for roughly 60% of the entire $297.3 billion global stablecoin market. That figure cements USDT’s position as the leading market share holder in the global stablecoin sector.
700 Million Users and an Undisclosed Audit Document
Growth across its user base also set new records in multiple regions. In a post on X, Tether CEO Paolo Ardoino announced that USDT’s user base officially crossed 700 million people worldwide. Ardoino added that the fastest pace of adoption was concentrated in emerging markets.
Behind the expanding capital and user numbers, transparency surrounding Tether’s financial reporting remains an open question. In August 2026, Tether completed its first full independent financial statement audit with accounting firm KPMG US. However, details of that maiden independent audit report have yet to be released to the public.
For the 700 million USDT users in emerging markets, the combination of a $1.5 billion operating profit, $7.95 billion in excess reserves, and $8.37 billion in Bitcoin holdings provides a picture of the company’s reserve backing. Yet, as long as the full KPMG US audit report remains undisclosed, the public and token holders continue to rely on BDO’s periodic attestation reports as their primary benchmark for tracking the stablecoin issuer’s financial condition.
Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
