Tether earned $4.5 billion in the first nine months of 2026, its third-quarter attestation showed on Friday. The $7.95 billion cushion protecting USDT holders from a shortfall is now smaller than the $8.37 billion in Bitcoin (BTC) sitting inside the reserves.
That cushion nearly doubled from $4.11 billion in three months. The same two assets that swing it, gold and Bitcoin, cut it in half last quarter, leaving USDT holders exposed to their prices as much as to US Treasuries.
Why $4.5 Billion in Profit Added Only $1.66 Billion to the Cushion
Net operating profit is Tether’s own yardstick. It comes mostly from interest on $132.4 billion in US Treasury bills and reverse repos, short-term loans backed by Treasuries, and it excludes price moves on gold and Bitcoin.
The attestation, prepared by accounting firm BDO, counts those moves. On that basis the buffer grew by $1.66 billion over nine months, not $4.5 billion.
BeInCrypto reported in July that the cushion halved in Q2 as gold and Bitcoin fell, despite another $1.5 billion quarterly profit. Friday’s release did not say what drove the $3.8 billion rebound.
What a 29% Drop in Gold and Bitcoin Would Do to USDT’s Backing
Gold and Bitcoin together total $27.45 billion in the reserves. A combined 29% fall would wipe out the entire buffer, by BeInCrypto’s calculation from the attested figures.
Gold, Bitcoin, secured loans, and other investments now make up $47.7 billion, or 25% of reserves.
S&P Global Ratings cut USDT to its lowest stability score, “weak,” in November 2025, when that share was 24%. It cited Bitcoin exposure above the buffer and undisclosed custodians and counterparties.
Tether’s defense is the other 73%. Some $139.6 billion sits in Treasuries, reverse repos, and cash, and BDO vouched for the totals, though it noted valuations assume normal trading conditions rather than market stress.
“Our responsibility is to make sure USD₮ remains dependable when people need it most, including when markets and financial systems come under pressure,” Paolo Ardoino, CEO of Tether, in the release.
The buffer has swung between $8.23 billion and $4.11 billion inside a single year, while USDT in circulation held near $183.5 billion.
Even with a first clean KPMG audit behind it, the world’s largest stablecoin now relies on gold and Bitcoin prices to keep its safety net in place.
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