Tether Becomes Seventh Largest U.S. Treasury Buyer, Invests $33.1 Billion in 2024

Tether, the issuer of the world's largest stablecoin USDT, has made significant strides in the U.S. Treasury market. In 2024, the company purchased a net $33.1 billion in U.S. Treasury securities, positioning itself as the seventh largest foreign net buyer of U.S. Treasuries. This achievement places Tether ahead of several major economies, including Canada, Mexico, and Germany, in terms of Treasury acquisitions.

Tether's substantial investment in U.S. Treasuries underscores the growing influence of stablecoins in traditional financial markets. The company's Treasury holdings now total approximately $94 billion as of December 2024, which helps maintain the stability and backing of the USDT stablecoin. This investment strategy is part of Tether's broader financial growth, as the company reported a record $13 billion net profit in 2024 despite facing regulatory challenges in Europe.

USDT continues to dominate the stablecoin market, representing 62.45% of the total $230 billion stablecoin supply. The stablecoin’s market capitalization has reached $143 billion, nearly three times larger than its closest competitor, Circle’s USDC, which stands at $59 billion. Tether's rapid growth is evident in its issuance of 45 billion USDT throughout 2024, with 23 billion USDT issued in the fourth quarter alone. The company's global user base has also expanded, surpassing 400 million users, with most coming from developing nations.

Despite its success, Tether may face regulatory hurdles in the U.S. market. A proposed stablecoin bill could restrict offshore issuers from accessing U.S. Treasury markets, potentially benefiting U.S.-based competitors like USDC. However, U.S. officials have recognized the importance of stablecoins for American financial influence. Treasury Secretary Scott Bessent recently stated that crypto and stablecoins are key to preserving the U.S. dollar’s global dominance. President Donald Trump echoed this sentiment, calling on Congress to pass clear regulations to encourage institutional adoption of crypto.

Tether's CEO, Paolo Ardoino, has defended the company's role in the financial system, stating that Tether has done more for financial inclusion than anyone else. Ardoino highlighted that if Tether were a country, it would be the 18th largest holder of U.S. Treasuries. This underscores the significant impact that stablecoins like USDT can have on global financial markets and the U.S. economy.