David Edwards
With more than $151 billion in assets, Tether is the biggest stablecoin issuer in the world and has officially overtaken Germany in terms of ownership of US Treasury securities. The company has more than $120 billion in Treasury notes, surpassing Germany’s $111.4 billion and placing Tether as the 19th-largest holder worldwide, according to data from the U.S. Department of the Treasury and Tether’s Q1 2025 attestation report.
Tether’s Market Position Is Strengthened by Strategic Treasury Use
As Tether expands its USDt stablecoin operations, this milestone demonstrates the company’s cautious reserve management strategy. Treasurys are now a key component of Tether’s asset reserve strategy since they are widely regarded as one of the safest and most liquid investment vehicles available.
“This milestone not only reinforces the company’s conservative reserve management strategy but also highlights Tether’s growing role in distributing dollar-denominated liquidity at scale,” the firm stated in its attestation.
Tether surpassed nations including Canada, Taiwan, and Mexico to become the seventh-largest foreign purchaser of U.S. Treasury securities in 2024.
Reserve Strategy Produces Quarterly Profit of Over $1 Billion
The robust performance of Tether’s U.S. Treasury assets was the main driver of the company’s over $1 billion operational profit in the first quarter of 2025. Another important factor was its gold reserves, which nearly completely compensated losses from the turbulence in the bitcoin markets.
These numbers demonstrate the robustness of Tether’s hybrid reserve mechanism, which blends exposure to digital assets with conventional financial instruments.
Clarity in Regulations May Encourage More Growth
At a critical juncture for the stablecoin industry, Tether holds a significant amount of U.S. government debt. The U.S. House of Representatives is anticipated to discuss the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which seeks to impose more stringent reporting and reserve requirements, as regulatory frameworks are being developed.
Due in part to political tensions surrounding President Donald Trump’s purported financial interests in digital asset enterprises, the GENIUS Act, which was meant to specify collateralization and compliance standards for stablecoin issuers, has stalled in Congress.
The stablecoin market is still expanding in spite of the uncertainty. On May 14, industry leaders, including more than 60 cryptocurrency innovators, gathered in Washington, D.C., to support more transparent and lucid regulatory requirements, highlighting the significance of legitimacy.
