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Tether's US Treasury Bond Holdings Surge 195% to $98.5 Billion in Q1 2025

Coin WorldThursday, May 1, 2025 4:06 pm ET

1min read

Tether, the world's largest stablecoin issuer, has made a significant move in the first quarter of 2025 by acquiring $65 billion in US Treasury bonds. This substantial investment was detailed in Tether's Q1 2025 Attestation Report, which highlighted a dramatic increase in the firm's holdings of these assets between January 1 and the end of the quarter.

Tether's report emphasized the potential role of USDT, the stablecoin issued by Tether, in global US dollar flows, describing it as "the leading digital representation" of the US dollar. The firm's treasury holdings now constitute more than 80% of its total assets, underscoring a strategic shift in its investment strategy.

In the previous quarter, Tether reported holding $33 billion in US Treasury bonds. By the end of Q1 2025, this figure had surged to $98.5 billion in direct holdings, with an additional $21.3 billion in indirect exposure. This brings Tether's total assets to $149.2 billion, with a significant portion allocated to US Treasury bonds.

Tether's shift towards US Treasury bonds is likely driven by regulatory considerations. Rumors have suggested that the firm may de-prioritize Bitcoin to better align with US stablecoin regulations. If proposed legislation becomes law, Tether would be required to hold most of its reserve assets in Treasury bonds. These acquisitions appear to be a proactive measure to comply with potential future regulations.

Tether's CEO, Paolo Ardoino, has stated that the firm's mission is to "responsibly and compliantly power the digital economy and strengthen the role of the US dollar on the global stage." This strategic move aligns with the firm's goal of supporting the global relevance of the US dollar in a rapidly evolving economy.

Tether's massive holdings in US Treasury bonds could have significant implications for the global treasury market. The firm's investments are vast, potentially large enough to influence market dynamics. This strategic shift is expected to drive Tether's substantial business ventures in the US market, positioning the firm as a key player in the digital economy.

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