Tether Becomes Seventh-Largest Holder of US Treasuries
YEREVAN (CoinChapter.com) — Tether, the issuer of USDT, has become the seventh-largest holder of US Treasuries, surpassing Canada, , Mexico, Norway, and Hong Kong. The stablecoin company has acquired over $33.1 billion in US Treasury bills, according to Paolo Ardoino, the CEO of Tether.
Ardoino posted on March 20 that Tether’s US Treasury purchases placed it ahead of several countries. The Cayman Islands, which holds over $100 billion, ranked first. He also noted that Luxembourg and the Cayman Islands include hedge fund investments, while Tether’s holdings come from a single entity.
Tether’s US Treasury Strategy Strengthens USDT Reserves
Tether continues to use US Treasuries to support the USDT stablecoin, as these short-term government securities are considered liquid and low-risk. By increasing Treasury investments, Tether strengthens its reserve assets, ensuring the backing of USDT remains stable.
Despite past scrutiny, Tether’s stablecoin remains the largest in the market, with a market capitalization exceeding $143 billion. Its growing Treasury holdings reflect rising adoption of stablecoins across financial markets.
Stablecoin Market Supply Surpasses $219 Billion
The total stablecoin supply has surpassed $219 billion, according to IntoTheBlock. The data indicates continued growth in the stablecoin market, with analysts noting that the crypto bull market is still mid-cycle, rather than nearing its peak.
The increase in stablecoin issuance suggests that investors continue to allocate funds to digital assets. The rising supply of USDT and other stablecoins reflects sustained demand in the crypto sector.
Stablecoin Regulations Could Arrive by August 2025
Additionally, US lawmakers are advancing discussions on stablecoin regulations. Kristin Smith, CEO of the Blockchain Association, stated that a stablecoin bill may be finalized by August 2025. She spoke at Blockworks’ Digital Asset Summit, explaining that progress is being made on crypto legislation.
Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, also mentioned that lawmakers are working toward stablecoin legislation.
“I think we’re close to being able to get those done for August […] they’re doing a lot of work on that behind the scenes right now,” Smith said on March 19 at the New York Summit.
Tether’s Role in a Changing Stablecoin Market
Above all, as the stablecoin market expands, Tether’s US Treasury investments, increasing stablecoin supply, and ongoing regulatory discussions indicate significant developments in the crypto sector.