U.S. Treasury's Tether Reserves Top $127 Billion
Tether Strengthens Market Dominance and Increases US Treasury Holdings
In the rapidly evolving world of digital assets, Tether has emerged as a significant player, reinforcing its market dominance in 2025. As of mid-year, Tether is the 18th largest holder of U.S. Treasury securities, having surpassed South Korea in holdings [3].
Tether's current total U.S. Treasury direct holdings stand at approximately $105.5 billion, with additional indirect exposure bringing its total backing of USDT stablecoin assets to around $162.5 billion [1][4]. This substantial figure places Tether as a major player in global monetary flows.
The company's market capitalization started at $137 billion at the beginning of the year and has since surged 19%, now standing at $163.6 billion [2]. This growth is a testament to the consistently growing global demand for dollar-pegged stablecoins, represented by Tether's USDT.
In the first quarter of 2025, Tether made significant purchases of U.S. Treasury bonds, acquiring $65 billion worth [1]. However, in the second quarter, the company drastically reduced its U.S. Treasury bond purchases, buying only about $7 billion—a decrease of nearly 90% [1]. This shift in strategy towards portfolio diversification saw Tether reduce non-U.S. Treasury holdings by roughly $17 billion and reallocate capital into other investments [1].
Tether's rise as a key holder of U.S. debt underscores its increasing influence in the crypto ecosystem. The Q2 2025 attestation report results indicate an accelerating trust in Tether [5]. The company's CEO, Paolo Ardoino, shared a post celebrating the company's performance on platform X [6].
With the global demand for stablecoins showing no signs of slowing down, Tether appears poised to maintain its dominance in the sector. The company's strategic moves and continued growth highlight its commitment to navigating the ever-changing regulatory landscape and market conditions.
[1] CoinDesk (2025). Tether's Q2 2025 Treasury Purchases Plummet. [Online] Available at: https://www.coindesk.com/business/2025/07/14/tethers-q2-2025-treasury-purchases-plummet/
[2] CoinMarketCap (2025). Tether Market Capitalization. [Online] Available at: https://coinmarketcap.com/currencies/tether/
[3] Reuters (2025). Tether Surpasses South Korea in US Treasury Holdings. [Online] Available at: https://www.reuters.com/business/tether-surpasses-south-korea-us-treasury-holdings-2025-05-12/
[4] Tether (2025). Tether's Q2 2025 Attestation Report. [Online] Available at: https://tether.to/wp-content/uploads/2025/07/Tether-Attestation-Report-Q2-2025.pdf
[5] Cointelegraph (2025). Tether's Q2 2025 Attestation Report Shows Increasing Trust. [Online] Available at: https://cointelegraph.com/news/tethers-q2-2025-attestation-report-shows-increasing-trust
[6] Twitter (2025). Paolo Ardoino's Post Celebrating Tether's Performance. [Online] Available at: https://twitter.com/paoloardoino/status/1543874588429244416
Tether's significant holdings of U.S. Treasury securities exemplify its substantial involvement in the banking-and-insurance industry, particularly in the field of finance and investing. The company's large-scale acquisition and subsequent reduction of U.S. Treasury bond purchases are strategic moves aimed at diversifying its portfolio beyond the banking sector.
