Tether Q3 profit hits $1.5B as reserve buffer nears $8B

Tether reported $1.5 billion in net operating profit in the third quarter, the same level as in Q2 2026.

According to its Q3 report on Friday, the company generated $4.5 billion in net operating profit during the first nine months of the year. In the third quarter alone, the company reported $1.5 billion in profit, with US Treasury bills and reverse repurchase agreements accounting for most of the income.

Tether's reserve buffer, which represents the excess of its assets over its liabilities, nearly doubled to $7.95 billion at the end of September, up from $4.1 billion at the end of June.

The company's total reserve assets reached $191.5 billion, compared with total liabilities of $183.5 billion. Its direct and indirect holdings of US Treasury bills also reached $132.4 billion.

Meanwhile, USDT issuance remained broadly steady at roughly $184 billion across the first three quarters of 2026, despite volatility in the broader cryptocurrency market.

Tether CEO Paolo Ardoino said the company's $1.5 billion in quarterly operating profit and nearly $8 billion in excess reserves provided a strong foundation for its operations.

He added that the company's reserve strategy was designed to maintain sufficient liquidity to meet redemption demands and support its infrastructure during difficult market conditions.

“The purpose behind our reserve strategy is to ensure we can continue to serve people when conditions become more difficult,” Adroino said.

Coinbase returns to profitability as trading revenue declines

On the other hand, Coinbase reported Thursday that its net income stood at $719 million in Q3, compared with $432.6 million in the same period last year. However, total revenue fell 35% YoY to about $1.22 billion, as weaker crypto trading activity weighed on transaction revenue.

Coinbase's Q3 net income marked a return to profitability after three consecutive quarters of losses. However, the result was largely supported by gains on crypto assets held for investment.

The company recorded roughly $715 million in gains on these assets during the quarter. Excluding investment gains and losses, as well as their associated tax effects, Coinbase reported adjusted net income of $77.7 million.

Transaction revenue fell 43% YoY to $590 million, reflecting weaker trading activity across its platform. Coinbase also reported adjusted EBITDA of $333 million, representing a 60% increase from the previous quarter and its 15th consecutive quarter of positive adjusted EBITDA.

The exchange recorded a 10.7% share of total cryptocurrency trading volume, marking its fourth consecutive quarter of market share gains across spot and derivatives markets.

Meanwhile, Coinbase also reported continued growth in its stablecoin business, with average USDC held across its products reaching an all-time high of $22 billion in Q3.

The figure represents a 49% increase YoY and accounted for roughly 30% of USDC's average market capitalization during the quarter.

Coinbase noted that it captured 50% of USDC's total economics over the past year, supported by on-chain partnerships and deeper integration of the stablecoin across its products.