Tether’s latest BDO attestation showed a $1.3 billion net operating profit for Q2 2026, while excess reserves climbed to $5.2 billion above the level needed to fully back USDT. The company said the profit was driven mainly by interest income from its large holdings of short-term U.S. Treasury assets and similar cash-equivalent instruments. Tether emphasized that net operating profit is separate from total reserves, and excess reserves are also distinct from USDT’s circulating supply.
As the largest dollar stablecoin in crypto, USDT is deeply embedded in exchanges, DeFi, payments, trading pairs and emerging-market dollar access. Tether’s reserve earnings have therefore become one of the most closely watched financial stories in the sector. The latest attestation is a point-in-time snapshot rather than a live reserve dashboard, but it still offers users and institutions a measure of reserve backing, profit and cushion at the reporting date.
Meanwhile, USDT continues to trade at a premium in India. Under normal conditions, Indian buyers pay roughly 3% to 5% above the actual dollar exchange rate. After major shocks, that premium has reached 8.5% to 10%. In late June 2026, following Enforcement Directorate raids on several Bengaluru offices, USDT was selling for about 102.88 rupees while the bank dollar rate was around 94.65 rupees, a gap of more than 8.5%. The stablecoin itself was not broken; the extra cost reflected how difficult it is to access USDT from inside India.
India is mostly a crypto buying market, and most international cryptocurrencies cannot be bought directly with rupees. Traders first convert rupees into USDT, then use that USDT to buy other coins internationally. Many Indians also hold USDT as a digital dollar hedge against rupee depreciation and inflation. Because India does not produce or mine its own USDT, all supply has to come from abroad. When local demand rises and foreign supply slows, the premium increases quickly. CoinDCX leaders noted that the rupee price of USDT depends on local buyer and seller activity relative to the global dollar price.
Regulatory and tax frictions prevent easy arbitrage. The Reserve Bank of India applies the Foreign Exchange Management Act, which limits how much money regular citizens can send abroad and bring back as crypto. The Liberalised Remittance Scheme is not designed for large-volume crypto purchases. In addition, India imposes a 1% tax deducted at source on most crypto transfers and a flat 30% tax on profits, with no ability to offset losses. Peer-to-peer sellers also face bank account freezes, cybercrime inquiries and fraud-linked payment risks, so they charge extra as risk compensation.
The India Premium is therefore a live measure of local dollar-linked crypto demand, barriers to capital inflows, and the extra costs traders charge for taxes and enforcement risk. Until India creates a large-scale official channel for stablecoins or lowers the tax and compliance burden, buyers should expect to pay 3% to 5% extra in normal conditions and more during supply shocks. For Tether, the latest profit and excess reserve figures reinforce its position as a highly profitable issuer with a large cushion, even as local frictions keep USDT more expensive for Indian users.
