Tether Surpasses Major Nations in US Treasury Holdings
By: Eliza Bennet
Tether, a prominent player in the cryptocurrency world and the issuer of the USDT stablecoin, has made significant strides in the global financial landscape. According to recent data, Tether has become the seventh-largest holder of US Treasury securities in 2024, with acquisitions amounting to $33.1 billion. This figure positions the company ahead of several countries, including Canada, Taiwan, Mexico, Norway, Hong Kong, South Korea, Germany, and Saudi Arabia in terms of Treasury holdings. The revelation underscores the growing influence of stablecoins in the traditional financial sphere.
The data was disclosed by Tether's CEO, Paolo Ardoino, who spoke about the company's strategy and its substantial investments in US government securities. The Cayman Islands remains the largest holder of US Treasuries, with over $100 billion in its portfolio, followed by France, Luxembourg, Belgium, Singapore, and the United Kingdom. Ardoino emphasized that, unlike regions such as the Cayman Islands and Luxembourg, where multiple hedge funds contribute to Treasury purchases, Tether's reserves are owned by a single entity.
Tether's investment in US Treasuries forms a critical part of its reserve strategy, providing a stable and liquid backing for the USDT stablecoin. These government securities are renowned for their safety and liquidity, ensuring the stability of Tether's offerings and supporting the dominance of the US dollar in global markets. Tether's overall US Treasury holdings reportedly reached $94 billion, solidifying its role as a significant global financial participant.
The rise of Tether as a major holder of US Treasuries reflects the increasing integration and acceptance of stablecoins in traditional finance. Analysts suggest that this trend could indicate a mid-cycle phase in the current bull market, with regulators and investors showing growing interest in such digital assets. As stablecoin adoption expands, the financial landscape continues to evolve, driven by the innovative capabilities of players like Tether.
