Tether, the company behind the USDT stablecoin, has significantly increased its influence within the U.S. Treasury market, with its purchase of $33.1 billion in U.S. Treasury securities.
Valued at $143 billion, this acquisition elevates the company to the position of the world's seventh-largest holder of U.S. government debt, exceeding the holdings of nations like Canada, Taiwan, Mexico, Norway, and Hong Kong.
Tether’s substantial investment highlights its commitment to strengthening the stability and liquidity of its USDT, adding further credibility to the role stablecoins are playing in bridging the gap between cryptocurrencies and traditional financial systems.
Tether's focus on U.S. Treasuries is not only a strategic move to back its stablecoin but also a clear message about its long-term stability and market trustworthiness.
The purchase of short-term U.S. government securities provides Tether with a safe and liquid asset base to support the USDT peg, ensuring that the stablecoin remains reliable amidst a volatile market.
Paolo Ardoino, CEO of Tether, made it clear that the company’s holdings are purely from Tether itself, unlike other jurisdictions such as the Cayman Islands and Luxembourg, which include hedge fund investments in their figures.
He pointed out,
“Tether was the 7th largest buyer of US Treasurys in 2024, compared to countries.”
This distinction highlights Tether’s position as a key player, not just among national buyers, but also in the broader financial landscape.
The growing demand for stablecoins, driven by both investors and lawmakers, is reshaping the financial landscape.
According to DefiLlama data, the total market value of stablecoins exceeds $230 billion, reflecting their increasing adoption for trading, payments, and other financial activities.
Source: DefiLlama
With Tether’s significant role in this market, its large-scale investments in U.S. Treasuries underscore the deepening integration of digital assets into traditional finance.
As regulatory frameworks for stablecoins evolve, Tether’s substantial Treasury holdings may also play a pivotal role in shaping future legislation.
U.S. lawmakers are currently working on new rules for stablecoins, with expectations that a bill could be passed by August 2025.
Kristin Smith, CEO of the Blockchain Association, shared during the 2025 Digital Asset Summit in New York,
“I think we’re close to being able to get those done for August […] they’re doing a lot of work on that behind the scenes right now.”
Despite regulatory scrutiny, Tether’s market position appears stronger than ever.
Its $33.1 billion U.S. Treasury purchase has positioned it ahead of many established nations, further solidifying its role as a trusted player in the cryptocurrency ecosystem.
The company’s decision to purchase U.S. Treasuries highlights its strategy to ensure financial transparency and resilience, providing reassurance to both investors and regulators.
Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, also anticipates imminent developments in stablecoin regulation, suggesting that Tether’s strategic investments will likely influence future policy decisions.
With stablecoins continuing to evolve, Tether’s actions may set a precedent for how digital assets interact with traditional financial systems in the years to come.
As of writing, USDT was trading at $0.9995, reflecting a slight change of -0.06% over the past 24 hours.
The stablecoin’s market capitalisation stands at $143.45 billion, with daily trading volume seeing a decrease of -26.61%, reaching $58.29 billion.
Source: CoinMarketCap
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