Tether’s reserves climb to $8B, Q3 profit tops $1.5B

Tether, the issuer of the USDT stablecoin, disclosed that its excess reserves have nearly doubled to $8 billion, a rise that follows a Q3 profit of $1.5 billion. The company’s quarterly earnings were driven by fee income and the appreciation of its underlying assets, which include a mix of cash, short‑term Treasury securities and Bitcoin.

Stablecoin Reserves and Profitability

At the end of September, Tether’s Bitcoin holdings were valued at $8.37 billion, while its U.S. Treasury holdings are comparable to those of major foreign holders. This diversification of assets provides a buffer against market volatility and supports the issuer’s ability to meet redemption requests.

By expanding its reserve base, Tether may strengthen market confidence in the stablecoin’s peg to the U.S. dollar, potentially improving liquidity for traders who rely on USDT for cross‑border transactions and as a hedge against crypto volatility. The firm’s robust quarterly profit also signals operational efficiency, which could influence investor perception of stablecoin issuers more broadly.

Based on reporting from Cointelegraph. Read the original.