Tether Surpasses South Korea as 18th Largest US Treasury Holder With 277% Profit Surge

Tether, the issuer of the popular stablecoin USDT, has become the 18th largest holder of U.S. Treasury securities globally, surpassing South Korea with holdings exceeding $127 billion as of June 30, 2025 [1]. This position reflects a strategic shift in the company’s financial approach, emphasizing stronger asset backing and enhanced market credibility. The move has been accompanied by a significant increase in profitability, with Tether reporting a Q2 2025 net profit of $4.9 billion, representing a 277% increase compared to the same period in 2024 [2]. The surge in earnings is attributed to the yield generated from the company’s substantial U.S. Treasury holdings, which now form a core component of its reserve assets [3].

Tether’s financial strength is further highlighted by its total assets, which have reached $162.6 billion, supported by liabilities tied to token issuance at $157.1 billion, demonstrating a robust solvency position [4]. The company has also expanded its secured loan portfolio to $8.8 billion, drawing attention from both regulators and market participants [5]. These developments underscore Tether’s broader strategy of diversifying its reserves and reinforcing its role in the global stablecoin ecosystem.

The company’s strategic evolution has coincided with regulatory developments in the U.S., including the passage of the GENIUS Act, which offers a formal regulatory framework for stablecoin issuers [6]. Tether has aligned itself with this new environment, emphasizing transparency and compliance, while also investing in infrastructure and technology platforms to support its long-term vision [7]. CEO Paolo Ardoino has outlined plans to expand Tether’s footprint in institutional payments and interbank settlements, signaling the company’s ambition to play a pivotal role in the broader financial system [8].

Tether’s risk management strategy includes holding gold reserves in a private Swiss vault, serving as a hedge against fiat currency instability [9]. These measures, combined with its diversified reserve portfolio, reflect a business model that balances liquidity and risk, aligning with successful reserve strategies seen in the past [10]. Analysts are closely monitoring the company’s financial disclosures, assessing the potential impact on market participants and on-chain activity [11]. As stablecoins continue to attract regulatory scrutiny, Tether’s ability to maintain reserve credibility and stakeholder confidence will be crucial to its continued influence in the digital asset space [12].

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[1] Tether Surpasses South Korea as the 18th Largest Holder... (https://www.moomoo.com/news/flash/20807253/tether-surpasses-south-korea-as-the-18th-largest-holder-of)

[2] Tether Profits Surge 277% on U.S. Treasury Yields (https://www.ainvest.com/news/tether-profits-surge-277-treasury-yields-2508/)

[3] Tether Reports Q2 Profit of $4.9 Billion, CEO Teases U.S. Venture (https://decrypt.co/332994/tether-reports-q2-profit-of-4-9-billion-ceo-teases-u-s-venture)

[4] Tether Q2 Profit Soars 277 to 4.9 Billion as USDT Supply Grows (https://www.ainvest.com/news/bitcoin-news-today-tether-q2-profit-soars-277-4-9-billion-usdt-supply-grows-20-billion-2508/)

[5] Tether Surpasses South Korea in U.S. Treasury Holdings (https://coinness.com/en/news/78749)

[6] Jake on X: "Tether just surpassed South Korea..." (https://x.com/immutablejacob/status/1950973494545559976)