Tether Surpasses South Korea as 18th Largest US Treasury Holder with $127B Holdings

Tether, the issuer of the world’s largest stablecoin USDT, has surpassed South Korea to become the 18th-largest holder of U.S. Treasury securities, with a total of $127 billion in holdings as of July 2025 [7]. This positions Tether among the largest institutional and sovereign investors globally, rivaling the holdings of major economies and financial institutions [5].

The rapid growth in Tether’s Treasury holdings coincides with a record $4.9 billion net profit in the second quarter of 2025, according to its quarterly financial attestation [1]. During the same period, the company issued $13.4 billion in new USDT, increasing the total supply to over $157 billion—a $20 billion rise since the start of 2025 [3]. The stablecoin’s dominance continues to widen, with a $100 billion lead over its second-largest competitor [6].

Tether’s reserve portfolio now totals $162.5 billion, with U.S. Treasury securities forming the largest portion [5]. This includes $105.5 billion in direct holdings and $21.3 billion in indirect instruments, such as money market funds, an increase of $8 billion from the first quarter of 2025 [6]. The strategic shift to hold highly liquid and low-risk assets enhances the credibility of the stablecoin and reassures users of its backing [1].

The company has also injected $20 billion in liquidity during the first half of 2025, further reinforcing its role in global financial infrastructure [9]. CEO Paolo Ardoino highlighted Tether’s accelerating growth, emphasizing the company’s intent to expand into tokenized assets and other financial instruments to strengthen its presence in the U.S. market [6].

With its expanding Treasury holdings and robust financial performance, Tether is now competing in the U.S. debt market alongside major economies. This development underscores the growing influence of stablecoin issuers in global finance, as they increasingly mirror the impact of traditional financial actors [7].

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 (CRYPTO: USDT) on Thursday released its Q2 2025 attestation, showing the company added over $13.4 billion in USDT during the quarter. (https://finance.yahoo.com/news/tether-posts-4-9b-profit-153302133.html)

[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/)

[7] 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/)

[9] Tether adds $20B liquidity in H1, boosts US debt holdings (https://www.mitrade.com/insights/news/live-news/article-3-1002649-20250801)