Analysis of Tether's Q2 2026 Attestation Report: Strengthening Profitability and Changes in Reserve Buffer

According to the Q2 financial attestation report released by Tether on July 31, 2026, the company recorded a net operating profit of $1.5 billion during the quarter. The report, verified by BDO, one of the world's top five accounting firms, shows that Tether is aggressively reallocating capital into physical assets such as Bitcoin and gold while simultaneously reducing its exposure to collateralized loans.

This performance suggests that Tether's market dominance is strengthening despite the overall stagnation in the stablecoin market. However, separate from the strengthening of profitability, the sharp decline in excess reserves—a 'buffer' intended to protect USDT holders—compared to the previous quarter is becoming a key focus of market analysis.

Tether's $1.5 billion operating profit for the second quarter of 2026 is an increase of approximately 50% compared to the first quarter. This differs in calculation method from the $4.9 billion net profit recorded in the second quarter of 2025; in its recent report, Tether shifted its reporting framework to focus on actual operating income, excluding asset value fluctuations, to emphasize the quality of its earnings.

This report, prepared by BDO, confirms the accuracy of Tether's financial figures and reserve report as of June 30, 2026, and provides a comprehensive overview of the assets backing USDT.

Tether maintained high exposure to U.S. Treasury bills this quarter, securing strong liquidity. According to BDO's attestation, as of June 30, 2026, Tether's total consolidated assets reached approximately $187.75 billion, exceeding its total liabilities of $183.64 billion.

Contraction of Excess Reserve Buffer and Market Reaction

The most notable change in this report is the decrease in Excess Reserves. Excess Reserves refer to assets held in addition to those backing 100% of USDT issuance; this quarter, they recorded $4.11 billion, a decrease of over $4 billion compared to the previous period. This decline is interpreted as a result of Tether's process of reducing collateralized loans, which are classified as risky assets, and restructuring its portfolio toward directly held assets such as gold and Bitcoin.

• During the second quarter, Tether purchased an additional 14 tons of physical gold, increasing its total holdings to over 146 tons.
• As part of its strategic reserve assets, it acquired approximately 1,800 additional Bitcoins, maintaining confidence in the cryptocurrency market.
• Since these hard assets are valued based on market value, they are a major factor contributing to volatility in Tether's overall net profit figures.

To eliminate risks on its balance sheet, Tether reduced the scale of its collateralized loans by approximately $2.38 billion, or about 15% compared to the previous quarter. This is evaluated as part of a conservative reserve composition strategy aimed at gradually moving away from loans collateralized by liquid assets and transitioning toward direct holdings of government bonds or physical assets.

As of June 30, 2026, the circulating supply of USDT was approximately $184.6 billion, an increase of about $446 million from the previous quarter. Even as the overall stablecoin market size shrinks, Tether's market share exceeds 60%, further solidifying its market dominance, which reflects continued demand from institutional investors.

Transparency of Asset Composition and Future Outlook

Currently, approximately 80-84% of Tether's reserves consist of U.S. Treasury bills, supporting its immediate redemption capability. Bitcoin and gold account for approximately 4-5% and 3-4% of total reserves, respectively, serving as strategic assets and suggesting the construction of a diversified portfolio that goes beyond simple cash equivalents.

BDO's latest attestation report is evaluated as a result of efforts to enhance Tether's financial transparency. However, the volatility of the reserve buffer due to fluctuations in gold and Bitcoin prices is expected to be a key indicator that stakeholders must continuously monitor when market volatility increases in the future.