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

Tether, the issuer of the largest stablecoin USDT, has become the 18th largest holder of U.S. Treasury securities, surpassing South Korea in the process. As of July 2025, Tether’s holdings in U.S. Treasuries exceed $127 billion, a figure that places it ahead of South Korea, which holds slightly less than the same amount [1]. This development marks a significant milestone in the company's financial evolution and underscores the increasing influence of private entities in global capital markets [4].

The surge in Tether’s Treasury holdings has been accompanied by a sharp rise in profitability. In Q2 2025, the company reported a net profit of $4.9 billion, representing a 277% increase from the previous quarter [2]. This performance is attributed to the expansion of its portfolio of U.S. government debt, which grew by $8 billion during the same period [3]. By holding high-grade, low-risk assets such as U.S. Treasuries, Tether has demonstrated a strategic approach to maintaining the stability and credibility of its stablecoin while generating returns.

The shift in ownership dynamics reflects a broader transformation in the global debt market. Traditionally dominated by sovereign governments and institutional investors, the rankings of U.S. Treasury holders have now been challenged by a private crypto firm. Tether’s rapid ascent into the top 20 of global U.S. debt holders highlights the growing financial scale of stablecoin issuers and their ability to compete with traditional financial actors [6].

Analysts suggest that Tether’s strategy aligns with broader trends in the crypto and stablecoin sectors. By investing in highly liquid and secure assets, stablecoin issuers are enhancing their financial resilience and reinforcing the stability of their tokens. This approach also aligns with regulatory expectations, particularly in jurisdictions where capital adequacy and transparency are key compliance requirements [5]. However, some experts caution that the increasing influence of private entities in government debt markets could introduce new risks, such as market volatility from large-scale buying or selling activities, and calls for greater transparency from firms like Tether.

Tether’s rise to the 18th largest U.S. Treasury holder underscores its strategic direction and financial scale. The company continues to build a diversified balance sheet, with U.S. government securities playing a central role in its risk management strategy. As its Treasury holdings grow, so too does its influence on global financial markets, offering a glimpse into the increasing intersection between traditional finance and the crypto ecosystem [6].

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[1] 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/)

[2] Tether surpasses South Korea to become the 18th largest ... (https://www.panewslab.com/en/articles/6vr3c9p8)

[3] Tether's U.S. Treasury Holdings Surpass $127 Billion, Up ... (https://bloomingbit.io/en/feed/news/93995)

[4] Tether Surpasses South Korea in U.S. Treasury Holdings (https://coinfomania.com/tether-us-treasuries/)

[5] How Tether Made $4.9 Billion in Three Months While ... (https://coincentral.com/how-tether-made-4-9-billion-in-three-months-while-buying-more-us-debt-than-south-korea/)

[6] Tether Surpasses South Korea in U.S. Treasury Holdings ... (https://www.ainvest.com/news/tether-surpasses-south-korea-treasury-holdings-127-billion-2508/)