The issuer is making money, but several issues separate that from holders being able to use their funds at any time. On October 30, Tether released attestation information for the third quarter: net operating profit for the quarter was $1.5 billion. As of September 30, reserve assets totaled approximately $191.451 billion, while total liabilities were approximately $183.496 billion, a difference of about $7.955 billion.

The figures are worth noting, but profit, reserve buffers, and liquidity are not the same thing.

First, profit. Tether said that short-term U.S. Treasury bills and reverse repos continued to contribute most of its operating income. This shows that reserve assets can generate income, but it does not mean that ordinary users holding USDT automatically earn the same return.

Holding stablecoins, participating in yield products, and directly purchasing government bonds involve different rights and risks. An increase in the issuer’s profits cannot be directly interpreted as interest earned by holders, much less used to conclude that a particular wealth management product is safe.

Next, consider the reserve buffer. Assets exceeding liabilities can provide some capacity to absorb risk. But changes in the buffer do not necessarily come entirely from operating profits in the current quarter; they may also be affected by asset prices and other financial items. An increase in the balance does not mean that the entire increase is newly generated operating cash.

Also, the announcement was published on October 30, but the financial snapshot is dated September 30. It provides a picture at a specific point in time, not real-time proof of reserve conditions on every subsequent day.

Liquidity also affects how funds can actually be used. Having assets on the books is not the same as being able to liquidate them quickly. Asset maturities, market depth, and counterparty arrangements all affect how funds can be mobilized under pressure. When assessing a stablecoin, you need to consider not only whether assets cover liabilities, but also whether those assets can be converted into usable funds promptly and at a reasonable cost.

It is also important to distinguish between redemptions with the issuer, sales on a trading platform, and exchanges through third parties. When ordinary users exchange USDT for other assets on a platform, they use that platform’s quoted rates and service arrangements; this is not the same as redeeming directly with the issuer.

So, beyond a reserve report, actual users have several practical questions: How much will they receive after an exchange? How are fees calculated? Which networks are supported? What conditions apply to transferring funds out?

This is also a relevant use case for multi-asset service gateways such as BiyaPay. With USDT as its core funding method, BiyaPay supports exchanges between more than 30 fiat currencies and more than 200 digital currencies. Users can deposit USDT and exchange it for US dollars or Hong Kong dollars, trade U.S. and Hong Kong stocks, and trade spot and futures contracts for digital assets such as BTC and ETH.

A more connected flow of funds does not mean that every step has become the same type of service. On-chain transfers, platform exchanges, and bank deposits still require separate checks of their respective rules.

Finally, interest rate changes also matter. If reinvestment yields decline when reserve assets mature, the issuer’s future interest income may fall, all else being equal. But lower profits do not automatically mean inadequate reserves; conversely, high profits cannot replace checks on asset quality and liquidity.

The scope of this attestation should also be respected. An attestation covering a specific entity, point in time, and reserve information should not be interpreted more broadly as providing a full-year audit assurance for all business activities across the entire group.

My understanding of this report is that operating profitability and the reserve buffer provide valuable information, but what ultimately matters to USDT users is the quality of the reserves, the terms of exchange, and the availability of funds.

When assessing stablecoins, don’t focus only on how much the issuer earns. A more complete assessment connects reserves, liquidity, and the actual paths users take to access their funds.

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