Tether Surpasses South Korea as 18th Largest US Treasury Holder

Tether, the issuer of the largest stablecoin USDT, has significantly increased its exposure to U.S. Treasury securities, now holding $127 billion in Treasury-related assets as of July 2025. This includes $105.5 billion in direct holdings and $21.3 billion in indirect instruments, such as money market funds, marking an $8 billion increase from Q1 2025 [5]. The firm has now become the 18th-largest holder of U.S. Treasury securities, surpassing South Korea and placing it among the ranks of major institutional and sovereign investors [7].

The firm’s financial performance has also shown substantial growth, reporting a net profit of $4.9 billion in Q2 2025, with $4 billion of that reinvested into U.S. initiatives [1]. During the same period, Tether issued $13.4 billion in new USDT, increasing the total supply to over $157 billion—a $20 billion rise since the beginning of 2025 [3]. USDT now holds a dominant market share in the stablecoin sector, maintaining a $100 billion lead over its closest competitor [6].

Tether’s strategy to increase its holdings in highly liquid and low-risk assets has reinforced the stablecoin’s credibility and confidence in its full backing [1]. In the first half of 2025 alone, the company injected $20 billion in liquidity into the broader market [9]. CEO Paolo Ardoino has also signaled Tether’s intent to expand into tokenized assets and other financial instruments to strengthen its position in the U.S. market [6].

This development highlights a growing trend where stablecoin issuers are playing an increasingly influential role in global financial markets. With large asset holdings and high profitability, these firms are beginning to mirror the behavior of traditional institutional investors, reshaping liquidity dynamics and capital allocation strategies [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)