Tether Becomes Seventh-Largest Holder of U.S. Treasuries

Tether, the company behind the world’s leading stablecoin USDT, has become the seventh-largest holder of U.S. Treasurys, surpassing countries including Canada, Taiwan, and Mexico.

The firm’s $33.1 billion in Treasury holdings reflect the growing role of stablecoins in financial markets and are used to back the $143 billion worth of USDT in circulation, among other cash equivalents the firm uses to back its tokens 1:1.

Related: Stablecoins Outpace Visa and Mastercard in 2024 With $27.6 Trillion in Transactions

Tether Investments in Treasuries

According to Tether CEO Paolo Ardoino, the company ranks behind the Cayman Islands, which holds over $100 billion in Treasurys. Unlike some jurisdictions, where hedge funds drive demand, Tether’s holdings represent direct investments by a single entity.

Tether was the 7th largest buyer of U.S. Treasuries in 2024, compared to Countries pic.twitter.com/fEANUL3fb2

— Paolo Ardoino (@paoloardoino) March 20, 2025

Short-term Treasurys are considered among the safest and most liquid assets, reinforcing confidence in the peg to the U.S. dollar.

Stablecoin Adoption Keeps Growing

The rise in stablecoin adoption extends beyond Tether. The total supply of the sector has surpassed $230 billion, suggesting continued market growth according to data from DeFiLlama.

Analysts at IntoTheBlock believe this indicates the crypto bull market is still in its mid-cycle, rather than approaching a peak.

Meanwhile, U.S. lawmakers are progressing toward stablecoin regulations. Kristin Smith, CEO of the Blockchain Association, said the legislation could be finalized by August, aligning with a forecast from the President’s Council of Advisers on Digital Assets.

Just recently, Dubai took a significant step in the adoption of digital assets by recognizing USDC and EURC as the first approved stablecoins under the Dubai Financial Services Authority (DFSA).

Related: Tether Announces Investment in Juventus Football Club