Tether's U.S. Treasurys Exposure Hits $120 Billion, Profit Surges 100%

Tether, the issuer of the world's largest U.S. dollar-pegged stablecoin USDT, reported that its total exposure to U.S. Treasurys reached nearly $120 billion by the end of March. This figure includes both direct and indirect exposure, with direct holdings amounting to approximately $99 billion. The indirect exposure is attributed to investments in money market funds and reverse repurchase agreements.

The company's quarterly attestation report, verified by accounting firm BDO, also highlighted Tether's financial performance. The stablecoin issuer generated over $1 billion in operating profit from traditional investments during the first quarter. This strong financial performance underscores Tether's ability to manage its reserves effectively and generate substantial returns.

Tether's investment strategy extends beyond traditional assets. The company has allocated over $2 billion towards long-term initiatives in various sectors, including renewable energy, artificial intelligence, peer-to-peer communications, and data infrastructure. This diversification reflects Tether's commitment to innovation and sustainable growth.

Additionally, the first quarter marked Tether's first fiscal period under regulatory supervision in its new headquarters. This development signifies Tether's efforts to comply with regulatory standards and operate within a framework that ensures transparency and accountability.