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

Tether, the issuer of the world’s largest stablecoin USDT, has become the 18th largest holder of U.S. Treasury securities, surpassing South Korea in this category with approximately $127 billion in holdings as of July 31, 2025 [5]. This includes $105.5 billion in direct Treasury holdings and an additional $21.3 billion in indirect holdings, a significant increase from its Q1 2025 reserves [6]. The development highlights Tether’s growing influence in global finance and reflects how major stablecoin providers are increasingly reshaping traditional financial ecosystems.

The company’s verified reserve assets now total $162.5 billion, with U.S. Treasuries forming a substantial portion of this portfolio. This strategic allocation aligns with Tether’s broader financial strategy to maintain a robust reserve base while supporting the peg of its stablecoin to the U.S. dollar. The shift also reflects a broader trend in the crypto sector, where stablecoin issuers are adopting traditional financial instruments to bolster trust and stability [5]. The milestone underscores Tether’s financial strength, with a record $4.9 billion in net profit for Q2 2025, and year-to-date profits reaching $5.7 billion [1].

Tether’s financial performance, verified by BDO, a leading global accounting firm, highlights its growing dominance in the stablecoin market, with a lead of $100 billion over the second-largest stablecoin provider [1]. During the same period, Tether issued $13.4 billion in new USDT, pushing the total supply beyond $157 billion and demonstrating its expanding role in global digital finance [3]. The company’s CEO, Paolo Ardoino, noted that the organization is “shaping” global demand for stablecoins, with over $20 billion in new USD₮ issued in Q2 alone [6].

Tether’s move into U.S. Treasuries also signals a broader ambition to expand its presence in the U.S. financial market. The company has already allocated $4 billion in U.S. initiatives and is preparing to launch new ventures, potentially including tokenized assets and other financial instruments. Ardoino emphasized the importance of diversified reserves in building trust in the stablecoin’s value proposition [6].

Multiple sources, including Messari, AInvest, Binance, and Phemex, have confirmed Tether’s status as the 18th largest holder of U.S. Treasury securities. As of July 31, 2025, Tether and South Korea were both reported to hold slightly more than $100 billion in U.S. debt [7]. This transition marks a significant shift in the global capital structure, where digital entities are now competing with sovereign nations as key holders of U.S. debt instruments.

The company’s growing Treasury holdings and financial transparency suggest a strategic effort to align with institutional expectations while maintaining its market leadership. As Tether continues to grow its reserve assets and expand its U.S. footprint, it is likely to face both opportunities and challenges in an increasingly regulated financial environment [10].

Source:

[1] Tether Reports $4.9B Net Profit in Q2, Invested $4B in U.S. (https://www.coindesk.com/business/2025/07/31/tether-reports-usd4-9b-net-profit-in-q2-invested-usd4b-in-u-s-initiatives)

[3] Tether Surpasses South Korea as 18th Largest US (https://www.ainvest.com/news/tether-surpasses-south-korea-18th-largest-treasury-holder-277-profit-surge-2508/)

[5] Tether Reports $4.9B Q2 Profit, Becomes One of Largest (https://coinpedia.org/news/tether-reports-4-9b-q2-profit-becomes-one-of-largest-u-s-treasury-holders/)

[6] Tether CEO Reveals $127B Treasuries, $20B USD₮ Growth (https://coinfomania.com/tether-ceo-reveals-127b-treasuries-20b-usd%E2%82%AE-growth/)

[10] Tether Posts Record $4.9B Profit | Launchy (https://launchy.app/newsletter/tether-posts-record-4-9b-profit)