Tether’s excess reserves double to $8 billion

Tether, the issuer of the world’s biggest stablecoin, reported that its excess reserves have almost doubled to $8 billion, while its profit for the third quarter rose to $1.5 billion. The company said its reserves are held mainly in US Treasury bills, with a Bitcoin pile valued at $8.37 billion as of September 30. The move follows a period of intense scrutiny over how much backing a stablecoin actually holds.

Stablecoins are designed to keep a fixed value, usually tied to the US dollar. Investors rely on the issuer’s reserves to cover every coin in circulation. Regulators have demanded more transparency after several high‑profile failures. Tether’s jump in reserves signals that the firm is tightening its cushion, possibly to reassure users and to meet new regulatory expectations. The $1.5 billion profit shows the company is still earning heavily from transaction fees and interest on its holdings.

The Treasury bills that make up most of Tether’s reserves are held in the same amounts as those owned by major foreign holders of the stablecoin. This means the US Treasury is a key part of the backing, giving the coin a domestic anchor. The Bitcoin reserve, worth $8.37 billion, shows that Tether also holds a sizeable portion of its backing in crypto assets, which can be more volatile but also more liquid. The mix of assets is meant to balance safety and profitability, but it also raises questions about how quickly the company can liquidate Bitcoin if many holders try to redeem their coins at once.

Next steps for Tether include a third‑party audit that will verify the exact composition of its reserves, a step that could satisfy both regulators and the market. If the audit confirms the numbers, it may ease pressure on other stablecoin issuers to disclose more information. The company has said it will continue to hold a mix of Treasuries and Bitcoin, and it plans to keep adding reserves as its user base grows. The outcome will shape how regulators view the stability of the broader cryptocurrency ecosystem.