Tether has just stepped into new territory. It’s now the 19th‑largest owner of US government debt. That means more private money is parked in Treasuries than many big nations.
Based on reports from the US Department of the Treasury, Tether was the seventh‑largest buyer of US Treasuries in 2024. It outpaced Canada, Mexico, Taiwan and Norway. Short‑term paper has become a go‑to asset for issuers of dollar‑pegged tokens.
That steady demand may help Washington finance its record borrowing, but it also raises a question about transparency. Tether publishes attestations, not full audits.
According to Tether’s own figures, the company booked over $1 billion in profits from conventional investments in Q1 2025. Most of that came from its Treasury stash.
Its gold holdings also played a part by softening swings in crypto markets. Taken together, these gains show that safe, liquid assets can still deliver while markets wobble. But they depend on borrowing costs staying low and deposit runs staying calm.
Tether is also branching out. It listed Tether Gold (XAUₜ) on Maxbit, a licensed Thai exchange, on May 13. That move follows Thailand’s March 2025 decision to allow trading of USD‑backed stablecoins without extra limits. Now, tokenized gold and USDT can flow more freely in Asia’s emerging markets.
Tether’s climb into the top 20 of US debt holders reflects a wider trend. Stablecoin issuers are quietly buying up Treasuries, making them a key source of dollar liquidity. It adds stability to crypto’s wild turns. Yet it also puts private players at the heart of one of the world’s largest markets.
Featured image from Unsplash, chart from TradingView
