Every USDT in circulation, according to Tether's promise, is backed by dollar-denominated assets. As of early 2026, there are approximately $130 billion USDT in circulation, meaning the company should hold an equivalent reserve mass. What does it consist of?

Where to Look

Tether publishes quarterly reports – Reserve Reports – which are reviewed by the independent firm BDO Italia. This is not a full audit in the strict sense, but an attestation: confirmation that at the time of review, reserves cover the issuance. The report can be found on tether.to under the Transparency section.

Typical Composition

According to recent reports, the reserve structure looks roughly like this:

  • US Treasury Bills (T-bills) – about 80%. Short-term U.S. government bonds. The most reliable and liquid part.
  • Repo agreements – about 8%. Reverse repurchase agreements backed by T-bills.
  • Money market funds, cash – about 4%.
  • Bitcoin – about 4%. Since 2023, Tether has been allocating part of its profits to purchase BTC.
  • Gold, secured loans, other – the remaining 4%.

The dominance of T-bills is a positive story: these instruments are liquid, reliable, and can be quickly sold on the market if needed. Until 2021, reserves contained a large percentage of commercial paper, and criticism was stronger then. Now the structure is noticeably more conservative.

What Raises Questions

No full audit. Attestation is not the same as an audit by the Big Four (KPMG, Deloitte, EY, PwC). Tether has repeatedly tried to obtain such an audit, but major firms have so far refused to work with the company.

Affiliated structures. Tether is linked to Bitfinex (one of the largest crypto exchanges) through common shareholders. In 2021, Tether paid a $42 million fine in the U.S. over a case involving misrepresentation of reserves in 2017-2018.

Bitcoin in reserves. Including a volatile asset as backing for a stablecoin is a concern. If BTC drops sharply, formally part of the backing disappears. Tether claims that BTC is covered by the company's own capital, not client funds.

What This Means for the User

The current reserve structure looks healthy, and Tether's peak profits in 2024-2025 ($10+ billion per year) provide a large safety buffer. However, this is not a bank deposit with insurance. In extreme scenarios (mass redemption, regulatory action), the risk of de-pegging from $1 remains non-zero – and that is part of the price for USDT existing outside the traditional banking system.

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