Tether’s surplus reserves fell by over $4 billion in the second quarter, as indicated by the stablecoin issuer’s most recent financial report, which showed a notable decline in its financial performance relative to the prior quarter.
During the first quarter, Tether had recorded an excess reserve balance of approximately $8.2 billion as the value of its assets was higher than its liability. But the excess reserves were reduced to approximately $4.1 billion during the latest quarter as its value decreased by $4.1 billion quarter on quarter.
The firm also posted a significant reduction in its profitability as the financial result of the firm during the first half of the year amounted to approximately $3.2 billion negative figure. It suggests that Tether might have recorded a loss of more than $4 billion during the second quarter as the company had a profit of approximately $1 billion in the first quarter.
This is a drastic change in the trend of the business as the firm has been posting significant profits since the launch of its operation in the digital asset industry through issuance of stablecoins and management of reserve assets. Tether remains one of the firms that possess large financial value in the industry due to huge value of USDT.
The decline in excess reserves could attract increased attention from investors, regulators and market participants because reserves are a key component of confidence in stablecoins. Tether has previously emphasized the importance of maintaining sufficient reserves to support USDT’s 1:1 dollar peg.
The company did not immediately respond to requests for clarification regarding the reported financial figures and the reasons behind the sharp decline in excess reserves.
Tether Q2 Excess Reserves Halved, Overall Financial Result May Have Exceeded $4B Loss
Tether’s latest reserve attestation shows excess reserves fell from a record $8.23 billion at the end of Q1 to $4.11 billion as of June 30, a decline of about 50%. Although Tether reported… pic.twitter.com/Pj6hSABV9W
— Wu Blockchain (@WuBlockchain) August 1, 2026
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