$1.5B Q3 profit for Tether as reserve buffer approaches $8B

• $1.5 billion was Tether's Q3 net operating profit. The result was unchanged from the preceding quarter.
• At $7.95 billion in September, Tether's reserve buffer was nearly double the $4.1 billion recorded at the end of June.
• Investment gains of $715 million accounted for a substantial share of Coinbase's third-quarter net income of $718.7 million.

Tether posted third-quarter net operating profit of $1.5 billion, unchanged from Q2 2026.

Net operating profit for the first nine months of the year totalled $4.5 billion, according to the company's Q3 report released on Friday. Of that, $1.5 billion in profit came in the third quarter, with US Treasury bills and reverse repurchase agreements generating most of the income.

By the end of September, Tether's reserve buffer had risen to $7.95 billion from $4.1 billion at the end of June, nearly doubling. The buffer measures the amount by which assets exceed liabilities.

Against total liabilities of $183.5 billion, the company held $191.5 billion in total reserve assets. Direct and indirect US Treasury bill holdings stood at $132.4 billion.

Despite broader cryptocurrency market volatility, USDT issuance held broadly stable at around $184 billion over the first three quarters of 2026.

Quarterly operating profit of $1.5 billion and excess reserves of nearly $8 billion gave Tether a solid operating foundation, CEO Paolo Ardoino said.

He also said the reserve strategy aimed to ensure sufficient liquidity for redemptions while supporting the company's infrastructure in challenging market conditions.

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

$719 million Q3 profit: Coinbase recovers despite lower trading revenue

By contrast, Coinbase disclosed on Thursday that Q3 net income reached $719 million, up from $432.6 million a year earlier. Total revenue, however, declined 35% YoY to around $1.22 billion. Softer cryptocurrency trading activity reduced transaction revenue.

Following three consecutive loss-making quarters, Coinbase returned to profit in Q3. Gains on cryptocurrency assets held for investment underpinned much of the result.

Gains on those assets amounted to roughly $715 million for the quarter. After excluding investment gains and losses and the related tax effects, adjusted net income was $77.7 million.

Weaker platform trading activity drove transaction revenue down 43% YoY to $590 million. Adjusted EBITDA reached $333 million, up 60% from the preceding quarter. This was Coinbase's 15th consecutive quarter of positive adjusted EBITDA.

With a 10.7% share of total cryptocurrency trading volume, the exchange extended its run of market share gains across spot and derivatives markets to a fourth consecutive quarter.

Growth also continued in Coinbase's stablecoin business. Average USDC holdings across its products hit a record $22 billion in Q3.

That was 49% higher YoY and represented around 30% of USDC's average market capitalisation for the quarter.

Over the past year, Coinbase captured 50% of USDC's total economics, the company said. On-chain partnerships and broader integration of the stablecoin across its products supported that share.