Tether’s Treasury Holdings Top Germany’s, Fueling Debate
Tether, the issuer of the USDT stablecoin, has amassed a staggering $120 billion in US Treasury holdings, surpassing even Germany’s holdings of $111.4 billion. This makes Tether the 19th largest holder of US government debt globally, highlighting the significant role cryptocurrency firms are playing in the US debt market. In 2024, Tether was the seventh-largest buyer of US Treasuries, outperforming several nations, including Canada, Mexico, Taiwan, and Norway. This substantial investment strategy, while potentially helping Washington finance its borrowing, raises concerns about transparency, as Tether publishes attestations rather than full audits. The company reported over $1 billion in profits from conventional investments in Q1 2025, largely attributed to its Treasury holdings and gold reserves. This profitability demonstrates the potential for stable returns from safe, liquid assets even amidst market volatility. Tether’s success is mirrored in the growth of USDT, whose market cap exceeded $150 billion for the first time. Over the past year, over 250 million users executed 5.8 billion transactions totaling $33.6 trillion using USDT. Experts predict stablecoin market growth to reach $1.6 trillion (Citi) or $2 trillion (Standard Chartered) by 2030 and 2028, respectively. Tether’s expansion also includes the listing of Tether Gold (XAUₜ) on Maxbit, a Thai exchange, following Thailand’s decision to allow USD-backed stablecoin trading without limitations. In conclusion, Tether’s massive Treasury holdings represent a growing trend of stablecoin issuers becoming major players in the US debt market, adding stability to the crypto market but also raising questions about transparency and the concentration of power in private hands.
(Source: https://bitcoinist.com/tethers-120-billion-treasury-stash-surpasses-germany-ranks-19th-globally/)
