Tether Surpasses South Korea as 18th Largest U.S. Treasury Bondholder

Tether has overtaken South Korea to become one of the largest holders of U.S. Treasury bonds, according to analysis by Messari. As of August 1, the stablecoin issuer surpassed not only South Korea but also Germany and the United Arab Emirates in U.S. debt holdings. Tether now ranks as the 18th largest U.S. Treasury bondholder globally, with its total U.S. Treasury exposure reaching over $127 billion, including $105.5 billion in direct holdings and $21.3 billion in indirect holdings. This represents an $8 billion increase from the first quarter of 2025 and reflects Tether’s expanding financial footprint [1].

South Korea currently holds just under $127 billion in U.S. Treasuries, meaning Tether has narrowly edged ahead of the country in terms of debt exposure. Tether remains the only corporate entity among the top 20 holders of U.S. Treasury securities, a list typically dominated by sovereign nations and central banks. The firm’s U.S. Treasury holdings also exceed those of Germany and the United Arab Emirates, both of which hold slightly more than $100 billion in U.S. debt [1].

Tether’s financial strength is further underscored by its recent balance sheet figures. As of Q2 2025, the firm reported total assets of $162.6 billion, exceeding its liabilities of $157.1 billion. The company also maintains $5.47 billion in shareholder capital, serving as a buffer to support solvency and stability. These reserves, along with the $127 billion in U.S. Treasuries, provide the foundation for the USDT stablecoin, ensuring its liquidity and low-risk profile [1].

The firm’s profitability has also surged in Q2 2025, with net profits reaching approximately $4.9 billion. This includes $3.1 billion in stable recurring revenue and $2.6 billion in mark-to-market gains, primarily from U.S. Treasury holdings and strategic investments in Bitcoin and gold. Tether has already deployed $4 billion in U.S. strategic initiatives, including ventures such as XXI Capital and Rumble Wallet, indicating continued reinvestment in its infrastructure [1].

Tether’s growing influence in the global financial system highlights the evolving role of stablecoin issuers in traditional markets. As a corporate entity with the financial capacity to rival sovereign states, Tether’s actions are likely to draw increased regulatory attention and scrutiny in the coming months.

Source: [1] Tether beats South Korea as one of the largest U.S. treasury bond holder (https://coinmarketcap.com/community/articles/688cb32466fad126cd96d214/)