Tether, the issuer of the USDT stablecoin, now holds $120 billion in short-dated U.S. Treasury bills, surpassing Germany's $111.4 billion and ranking 19th among global investors. This milestone was confirmed by U.S. Treasury Department data for the first quarter of 2025 and Tether's latest financial attestation.
This substantial Treasury portfolio includes $98.5 billion in direct T-bill holdings and approximately $23 billion in repurchase agreements and cash equivalents, alongside a growing gold allocation. These assets have helped Tether generate over $1 billion in operating profit in the last quarter and $5.6 billion overall, even amid volatile cryptocurrency markets.
Tether views this conservative yet large-scale dollar liquidity management as a key factor that maintains USDT's dollar peg despite price fluctuations in digital assets. The move aligns with increasing stablecoin demand which is also supporting U.S. Treasury bill sales and backing the U.S. dollar.
In 2024, Tether was the seventh-largest net foreign buyer of U.S. Treasuries, reflecting a strategic and financial shift that enhances its global standing while anticipating stricter stablecoin regulations in the U.S., such as the forthcoming STABLE Act and GENIUS Act legislation.
Stablecoin market capitalization has surged to $243 billion with USDT dominance at 62.35%, valued at $152 billion. Wallet activity has increased by 53% year-over-year, indicating growing adoption.
Industry leaders and regulators recognize properly backed stablecoins as a potential force in streamlining cross-border payments and reinforcing the dollar's global reach. However, regulatory clarity remains essential, with lawmakers debating comprehensive rules to ensure transparency, reserves disclosure, and licensing.
Tether’s robust Treasury holdings and strategic positioning demonstrate how stablecoins could become structural supporters of U.S. debt markets and institutional capital flow. Still, the future impact depends on regulatory outcomes and legislative actions in Congress.