Tether has just stepped into new territory. It’s now the 19th‑largest owner of US government debt. That means more private money is parked in Treasuries than many big nations.
Tether Surpasses Germany In Treasury Holdings
According to the Q1 2025 attestation report, Tether holds $120 billion in US Treasuries. Germany, by comparison, stands at $111.4 billion. This shift puts a stablecoin issuer ahead of a major sovereign investor. It also highlights how crypto firms are using plain‑vanilla bonds to back digital dollars.
Rising Role In US Debt Market
Based on reports from the US Department of the Treasury, Tether was the seventh‑largest buyer of US Treasuries in 2024. It outpaced Canada, Mexico, Taiwan and Norway. Short‑term paper has become a go‑to asset for issuers of dollar‑pegged tokens.
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
That steady demand may help Washington finance its record borrowing, but it also raises a question about transparency. Tether publishes attestations, not full audits.
Image: Volet
Strong Returns In First Quarter
According to Tether’s own figures, the company booked over $1 billion in profits from conventional investments in Q1 2025. Most of that came from its Treasury stash.
Its gold holdings also played a part by softening swings in crypto markets. Taken together, these gains show that safe, liquid assets can still deliver while markets wobble. But they depend on borrowing costs staying low and deposit runs staying calm.
From 0 to $150B.
Born in 2014, Tether didn’t just launch USD₮ — it launched the entire stablecoin industry.
Today, USD₮ is trusted by 400+ million people & powers the digital economy.
To every user, builder & believer: thank you❤️
We’re just getting started#UnstoppableTogether pic.twitter.com/PPC2PUy1Si— Tether (@Tether_to) May 12, 2025
Record USDT Growth And Usage
Based on reports, USDT’s market cap climbed past $150 billion for the first time ever. That’s up by more than $11 billion this year. In the past 12 months, over 250 million users completed 5.8 billion stablecoin transactions worth $33.6 trillion.
Visa data suggests 192.2 million addresses bought stablecoins and 242.7 million received them. Citi forecasts stablecoins could reach a $1.6 trillion value by 2030, and Standard Chartered sees them hitting $2 trillion by 2028.
Tether is also branching out. It listed Tether Gold (XAUₜ) on Maxbit, a licensed Thai exchange, on May 13. That move follows Thailand’s March 2025 decision to allow trading of USD‑backed stablecoins without extra limits. Now, tokenized gold and USDT can flow more freely in Asia’s emerging markets.
Tether’s climb into the top 20 of US debt holders reflects a wider trend. Stablecoin issuers are quietly buying up Treasuries, making them a key source of dollar liquidity. It adds stability to crypto’s wild turns. Yet it also puts private players at the heart of one of the world’s largest markets.
Featured image from Unsplash, chart from TradingView
