Tether Surpasses South Korea as 18th Largest U.S. Treasury Holder with $127 Billion Holdings

Tether, the largest stablecoin issuer, has moved past South Korea as the 18th largest holder of U.S. Treasury securities, according to multiple recent reports. The firm now holds more than $127 billion in U.S. government bonds, a position previously held by South Korea [1][2][3][4][5][6][7][8]. This shift marks a significant moment in the growing influence of stablecoin entities in the global debt markets.

Tether’s Q2 2025 attestation revealed an $8 billion increase in its U.S. Treasury holdings, bringing the total to $127 billion [9]. The move not only solidified its status as a major player in the U.S. debt market but also demonstrated the firm’s ongoing strategy to strengthen the backing of its stablecoin, USDT [7]. Tether emphasized that its Treasury positions support the “dollar peg” of its stablecoin, addressing concerns over transparency and asset reserves [7].

The surpassing of South Korea occurred amid broader market activity, with Tether also adding $20 billion in liquidity during the first half of 2025 [9]. This liquidity expansion, combined with the growing Treasury portfolio, reflects a dual strategy aimed at both stability and scale. South Korea, now holding less than $127 billion in U.S. bonds, has been edged out by a private entity rather than a government or institutional investor [1][2][4].

The change in rankings underscores the evolving dynamics of global investment behavior, with corporate actors increasingly rivaling sovereign nations in key financial metrics. Tether’s position is not just a matter of size but also of influence—its holdings now represent a meaningful portion of the U.S. Treasury market [5][6][8].

Tether’s $127 billion holding places it close to Saudi Arabia, which owns roughly $135 billion in U.S. Treasuries. If Tether’s growth continues at its current pace, it could overtake Saudi Arabia within a quarter or two [1]. This shift highlights a growing trend: private crypto firms are becoming powerful financial players, managing assets that rival those of entire nations. It also underscores the increasing role of stablecoins in global liquidity, dollar demand, and monetary flows [1].

Tether’s expansion reflects the broader rise of stablecoins as tools for global trade, remittances, and investment. As demand for USDT grows, so does the need to back it with reliable, dollar-denominated assets. US Treasuries offer the safety and liquidity Tether needs to maintain confidence among users. With over 70% of its reserves in Treasuries, Tether is positioning itself not just as a crypto company, but as a major financial institution with real-world influence [1].

Analysts have observed that Tether’s strategic accumulation of Treasuries aligns with its broader efforts to ensure regulatory compliance and maintain trust in its stablecoin. As the firm continues to grow, its financial footprint within the U.S. debt market is expected to remain a topic of interest for both regulators and market participants [9].

Tether’s growing influence raises questions about the long-term sustainability of such large-scale private holdings in U.S. debt. However, the momentum it has built shows no sign of slowing down, signaling a potential new era in the intersection of crypto and global finance [1].

Source:

[1] AInvest – https://www.ainvest.com/news/tether-surpasses-south-korea-18th-largest-treasury-holder-2508/

[2] MEXC – https://www.mexc.com/news/tether-beats-south-korea-as-one-of-the-largest-u-s-treasury-bond-holder/63336

[3] Coinfomania – https://coinfomania.com/tether-us-treasuries/

[4] CoinCentral – https://coincentral.com/how-tether-made-4-9-billion-in-three-months-while-buying-more-us-debt-than-south-korea/

[5] Moomoo – https://www.moomoo.com/news/flash/20807253/tether-surpasses-south-korea-as-the-18th-largest-holder-of

[6] MEXC – https://www.mexc.com/news/tether-surpasses-south-korea-to-become-the-18th-largest-holder-of-us-treasury-bonds/63310

[7] 매일경제 – https://www.mk.co.kr/en/stock/11383162

[8] 코인니스 – https://coinness.com/en/news/78749

[9] Mitrade – https://www.mitrade.com/au/insights/news/live-news/article-3-1002649-20250801