Tether, the issuer of the largest stablecoin, has released its Q2 2026 report. Profit came in at $1.3 billion, and excess reserves reached $5.2 billion. The numbers are impressive, but let's break down what they mean for those using USDT for subscriptions, transfers, and crypto operations.

What are excess reserves and why they matter

Excess reserves are funds that remain after backing each issued USDT with assets at least 100%. In simple terms, it's a safety cushion. The larger it is, the more resilient the stablecoin is to market fluctuations and redemption requests. Currently, Tether holds $5.2 billion above its obligations—an all-time high.

How this affects users

For USDT holders, this is a positive signal: the issuer is strengthening liquidity, reducing risks associated with potential bank runs. In practice, this means your USDT remains backed, and you can rely on the 1:1 peg to the dollar. For VirtCardPay users, this is especially relevant: we use USDT to top up virtual cards and pay for foreign services. The reliability of the stablecoin directly impacts the security of your transactions.

Which network to choose for USDT transfers

Tether operates on several blockchains, and the choice of network determines speed and fees. Here are the main options:

  • TRC-20 (Tron): The most popular network for USDT. Fees are usually negligible (under $1), and transfers take seconds. Ideal for regular payments and small amounts.
  • ERC-20 (Ethereum): More expensive and slower. Fees can reach $5-10 depending on network congestion. Suitable for large amounts where reliability matters more than speed.

For most everyday operations—card top-ups, subscription payments—TRC-20 is the optimal choice. It saves time and money. If you're transferring significant sums, you might consider ERC-20, but be aware of high gas fees.

Conclusion

Tether's report inspires confidence: rising profits and reserves strengthen USDT's position as a stable payment instrument. For users, this means the stablecoin remains a reliable means for international payments. The key is to choose the right network for transfers to avoid overpaying on fees.

This article is for informational purposes and does not constitute financial advice. Cryptocurrencies are volatile; do your own research before use.

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Sources

This material is for informational purposes only and is not financial advice. Data and service terms may change, so check primary sources before making a payment or investment decision. Mentions of third-party brands and services do not imply official partnership, support, or endorsement by VirtCardPay.
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