Tether Buys $33.1B in U.S. Treasuries, Becomes Seventh-Largest Buyer

Tether, the issuer of the USDT stablecoin, has emerged as a significant player in the U.S. Treasury market, ranking as the seventh-largest buyer of U.S. Treasuries in 2024. This position was revealed in a March 20 update by Tether CEO Paolo Ardoino, who disclosed that the company had acquired a net $33.1 billion in U.S. Treasuries. This substantial investment surpasses the holdings of several nations, including Canada, Mexico, and Germany, highlighting Tether's growing influence in the global financial landscape.

The acquisition of U.S. Treasuries is a strategic move for Tether, as these government-backed securities are considered among the safest and most liquid assets worldwide. This reserve strategy ensures the stability of the USDT stablecoin, which is pegged to the U.S. dollar. According to Tether’s last quarterly reserve report in December 2024, the firm’s total U.S. Treasury holdings are worth $94 billion. This places Tether ahead of most countries in terms of its role in the global financial system.

Ardoino noted that while the Cayman Islands led global purchases with over $100 billion in acquisitions, followed by France, Luxembourg, Belgium, Singapore, and the United Kingdom, Tether’s holdings are unique. Unlike the Cayman Islands and Luxembourg, which include investments from multiple hedge funds, Tether’s assets belong to a single entity. This distinction highlights Tether’s concentrated and strategic approach to investing in U.S. Treasuries.

The substantial holdings of U.S. Treasuries by Tether not only support the stability of the USDT stablecoin but also play a key role in maintaining the dollar’s dominance in global trade. Ardoino has previously argued that these holdings bolster U.S. economic influence, reinforcing the dollar’s status as the world’s reserve currency. This strategic investment aligns with Tether’s mission to provide financial services to unbanked populations in developing countries, extending the reach of the U.S. dollar through its stablecoin.

In summary, Tether’s position as the seventh-largest buyer of U.S. Treasuries in 2024 underscores its growing influence in the global financial system. The company’s strategic investment in U.S. Treasuries ensures the stability of its USDT stablecoin and supports the dollar’s dominance in global trade. This achievement highlights Tether’s role as a major player in the U.S. Treasury market and its commitment to providing financial services to unbanked populations worldwide.