Tether Treasury Holdings Surpass South Korea's at $127 Billion

Tether, the issuer of the world’s largest stablecoin USDT, has increased its U.S. Treasury holdings to $127 billion, surpassing South Korea’s $124.2 billion in holdings and securing the 18th position among global holders of U.S. Treasurys [2]. This development highlights Tether’s growing influence in global monetary markets and its role in stabilizing the USDT stablecoin. In its attestation report for the second quarter of 2025, the company disclosed $105.5 billion in direct U.S. Treasury exposure and an additional $21.3 billion held indirectly [3]. Compared to the previous quarter, Tether’s Treasury holdings rose by $7 billion, pushing it past Germany and moving it closer to Saudi Arabia, which holds $127.7 billion in U.S. debt [2].

Tether’s increased Treasury holdings coincide with a significant expansion in its USDT operations. The stablecoin’s market capitalization has risen nearly 19% year-to-date, from $137 billion in January 2025 to $163.6 billion [2]. During the same period, $26 billion in new USDT tokens have been issued, reflecting growing global demand for dollar-backed digital assets. The company’s total assets have also grown to $162.6 billion, with token-related liabilities reaching $157.1 billion and shareholder equity remaining stable at $5.47 billion [2].

Tether CEO Paolo Ardoino highlighted the growing trust in the company, stating that Q2 2025 reaffirmed the trend of increasing market confidence in Tether. The CEO shared a celebratory meme on X to mark the milestone and emphasized the company’s readiness to operate under the evolving regulatory landscape, particularly with the introduction of the U.S. GENIUS Act, which aims to establish a legal framework for stablecoin issuers [2]. Tether has positioned itself as a model for compliance, ensuring its operations align with the new rules and its ability to facilitate digital dollar adoption globally.

In addition to U.S. Treasurys, Tether has expanded its secured loan portfolio to $8.8 billion, with transactions conducted in compliance with regulatory standards. These loans are backed by Tether’s reserves, and the company has recently secured a licensing approval in El Salvador [2]. Analysts are monitoring the impact of Tether’s reserve strategies and loan exposure on market stability and investor sentiment, particularly as the stablecoin sector moves toward greater regulation.

Tether’s reserve diversification also includes allocations to assets like Bitcoin and gold. The company maintains gold reserves in a private vault in Switzerland as a hedge against U.S. debt risks. Ardoino described this as a precautionary measure, emphasizing the company’s proactive approach to risk management. Tether is also preparing to re-enter the U.S. market, leveraging the GENIUS Act to expand its institutional payments and interbank settlement capabilities [2]. The firm is investing in technology and data infrastructure to shape the future of the stablecoin ecosystem.

Tether’s financial performance for Q2 2025 underscores its dominance in the stablecoin market. The company reported a net profit of $4.9 billion, a 277% increase year-on-year, driven by rising U.S. Treasury yields and the expansion of its reserve portfolio [1]. With its growing asset base and strategic alignment with regulatory developments, Tether is well-positioned to influence global digital finance trends as the stablecoin industry matures [2].

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[1] title1: 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/)

[2] title2: Tether Profits Surge 277% on U.S. Treasury Yields (https://www.ainvest.com/news/tether-profits-surge-277-treasury-yields-2508/)

[3] title3: Las tenencias de bonos del Tesoro de EE. UU. de Tether ... (https://es.cointelegraph.com/news/tether-us-treasury-holdings-127b-surpasses-south-korea)