In a remarkable development within the financial landscape, Tether, the issuer of the world’s largest stablecoin, USD₮ (USDT), has surpassed Germany in holdings of U.S. Treasury securities. According to Tether’s first-quarter 2025 attestation report, the company now holds over $120 billion in U.S. Treasuries, positioning it as the 19th largest holder among all countries and entities. This surpasses Germany’s reported holdings of $111.4 billion, as per the U.S. Department of the Treasury.
This achievement underscores Tether’s strategic shift towards traditional, low-risk assets to back its stablecoin. Historically, Tether’s reserves included a significant portion of commercial paper; however, the company has since reduced its commercial paper holdings to zero, replacing them entirely with U.S. Treasury bills. This move aligns with Tether’s commitment to enhancing the transparency and stability of its reserves.
The company’s substantial investment in U.S. Treasuries has not only bolstered its reserve assets but also contributed to its financial performance. In the first quarter of 2025, Tether reported over $1 billion in operating profit, primarily driven by the performance of its Treasury and gold investments. These traditional assets helped mitigate the volatility experienced in the cryptocurrency markets during the same period.
Tether’s growing influence in the financial sector is further highlighted by its ranking as the seventh-largest buyer of U.S. Treasuries globally in 2024, surpassing countries such as Canada, Taiwan, Mexico, Norway, and Hong Kong . This positions Tether as a significant player in the global financial markets, demonstrating the increasing institutional acceptance of stablecoins and their role in traditional finance.
As the regulatory landscape for stablecoins continues to evolve, Tether’s expansion into traditional financial assets may serve as a model for other cryptocurrency issuers. The company’s approach emphasizes the importance of reserve diversification and transparency in building trust with institutional investors and regulators alike.
In conclusion, Tether’s surpassing of Germany in U.S. Treasury holdings marks a significant milestone in the integration of digital assets into the traditional financial system. This development reflects the growing influence of stablecoins in global finance and underscores the need for continued regulatory clarity to support their sustainable growth and adoption.
