- Stablecoin firm Tether has surpassed South Korea in US Treasury holdings, highlighting a remarkable leap in the firm’s influence in the global financial markets.
- At 135 billion worth of treasuries, the leading stablecoin issuer has come up to the 17th position among the largest holders of US debt.
Stablecoin issuer Tether has gone past South Korea on the list of the largest US Treasury holders in the world, reinforcing its integration into the global financial landscape. With over 135 billion US Treasuries, the firm now sits at 17th place among the largest holders of US debt.
Tether Tops Sovereign Nations In Treasury Holdings
The company’s CEO, Paolo Ardoino, recently shared the development on X, while projecting that Tether’s treasury holdings will soon exceed those of Brazil, which is directly above it with over $202 billion in Treasury bills.
Beyond the thrill of a private crypto firm competing against sovereign states for US debt, Tether’s growing footprint in US Treasury exposure underscores the stability of its yields and the burgeoning market capitalization of the stablecoin sector. The firm currently earns billions in profits from the financial instrument exposure, which accrues only to Tether, as users don’t share in them.
Tether’s mammoth acquisition of the debt instrument comes in handy, especially at a time when some nations like China are strategically cutting down their stash of treasuries. China has been in a tariff war with the US for the greater part of 2025 and has shed a portion of its treasury bonds to reduce reliance on the US.
Additionally, China looks to further diversify its sources of revenue amid the ongoing trade tensions. Meanwhile, the country still ranks as third third-largest holder of US debt with over $730 billion as of July 2025, only below the United Kingdom with over $899 billion in Treasury securities and Japan, the largest holder with $1.15 trillion in US debt.
It turns out Tether is not the only stablecoin issuer stacking up US debt securities for its reserves. American stablecoin issuer Circle also holds over $55 billion in treasuries, while enterprise digital asset solutions provider Paxos has approximately $2 billion alongside First Digital Trust.
Tether’s T-Bills Exposure Enhances US Dollar Hegemony
On the geopolitical front, Tether expands the reach of the US dollar through its USDT stablecoin, especially in emerging economies without access to the US banking system. In essence, the company is increasing dollar liquidity for US Treasury bills and exporting this liquidity to rising economies like Nigeria, Argentina, etc, thus strengthening global dollar hegemony.
While Tether’s holdings present massive advantages for the dollar and the US debt profile, the concentration of debt securities might also attract some US government scrutiny, especially since Tether is a foreign-owned firm and any large-scale redemptions could trigger market instability.
Amid these concerns, the US legislature has successfully established a foundational framework for stablecoins in the GENIUS Act. In addition to the stablecoin legislation, Congress is working on a more advanced Market Structure Bill that could address some of the potential risks associated with dollar-backed stablecoins, thus balancing between protection and innovation.
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