Tether posted a $1.5 billion net profit in Q2 2026 and grew its reserve buffer to $4.1 billion, while its USDT stablecoin user base reached a record high. The issuer is pushing further into Latin America and Africa even as USDT's market cap has dropped nearly $7 billion from its May peak.
Tether posted a $1.5 billion net profit in the second quarter of 2026, pushing its reserve buffer to $4.1 billion to cover potential USDT redemption emergencies. The result marks a 44% increase from the $1.04 billion profit Tether posted in Q1 2026, driven mainly by U.S. Treasury bonds and repurchase agreements. The issuer also raised its physical gold holdings from 132.2 tons to 146 tons, a 10.5% increase from the prior quarter.
USDT user base hits record high
According to Tether CEO Paolo Ardoino: "Tether had a great second quarter of 2026, with ~1.5B in net operating profit". He added that the USDT user base continued to grow, reaching a new all-time high of more than 650 million, with the widest surge across emerging markets, fueled by continued geopolitical uncertainty.
Tether expands in Latin America and Africa
Tether is deepening its footprint in the developing world. USDT trading on Binance in Venezuela hit $1.4 billion, rivaling the country's oil exports and central bank foreign exchange reserves. Bolivia's government, meanwhile, is weighing making USDT legal tender as local banks and businesses already use it.
Across Africa, USDT has largely served remittances and hedging against local currency inflation. This week, Tether announced a plan with Kenya to study tokenization of local stocks and enable settlements in USDT. Whether regulatory friction across the continent lets that plan reach fruition remains unclear.
USDT market cap slides $7 billion from its May peak
Despite the record user count, USDT's market cap has dropped nearly $7 billion from May's peak of $190 billion to $183.5 billion. Tether's US-focused stablecoin, USAT, has grown slowly and holds a market cap of $185 million. The overall stablecoin market has also declined from $322 billion to $307.6 billion, a 5% drop in Q2 amid an extended crypto winter.
Source: AMBCrypto
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