Tether’s US Treasury Holdings Exceed Canada and Taiwan, Ranking 7th Worldwide
Tether, the issuer of the world’s largest stablecoin USDt (USDT), has become the seventh-largest global buyer of US Treasury securities, surpassing major economies such as Canada, Taiwan, Mexico, Norway, and Hong Kong.
Key Highlights
- Tether acquired over $33.1 billion in US Treasurys in 2024.
- It ranks seventh globally, behind the Cayman Islands, Luxembourg, Japan, the UK, Belgium, and Switzerland.
- The Cayman Islands topped the list with over $100 billion in Treasury purchases, though this figure includes multiple hedge funds, unlike Tether’s single-entity investment.
Stablecoin Adoption and Market Growth
Tether’s significant investment in US Treasurys underscores the growing adoption and importance of stablecoins in global financial markets. Stablecoins, pegged to stable assets like the US dollar, have seen rapid growth, with the total stablecoin supply recently surpassing $219 billion. Analysts suggest this indicates the crypto market is still mid-cycle rather than at its peak.
Upcoming Stablecoin Legislation in the US
US lawmakers are actively working on comprehensive stablecoin legislation, expected to pass by August 2025. Kristin Smith, CEO of the Blockchain Association, confirmed that bipartisan efforts are underway to establish clear regulatory frameworks for stablecoins and cryptocurrency market structures.
Summary
Tether’s substantial US Treasury holdings highlight its growing financial influence, surpassing several major countries. This development coincides with increasing stablecoin adoption and imminent regulatory clarity in the United States, signaling a significant shift in global financial dynamics.
