Tether, the world’s largest stablecoin issuer, has become a major player in global finance after revealing it now holds $127 billion in U.S. Treasury bills, a figure that surpasses the holdings of South Korea.
Tether’s Treasury Holdings Now Rank 18th Globally
In its Q2 2025 attestation report, Tether disclosed $105.5 billion in direct U.S. Treasury exposure, along with $21.3 billion held indirectly through money market funds. This brings its total exposure to $127 billion—up $7 billion from the previous quarter.
Tether now holds more U.S. government debt than major economies like South Korea, Norway, and Brazil.
This puts the stablecoin issuer ahead of South Korea’s $124.2 billion and just behind Saudi Arabia, which holds $127.7 billion, according to U.S. Treasury data.
USDT Market Cap Surges Amid Growing Global Demand
Tether’s expanding Treasury position reflects growing demand for its USD-pegged stablecoin, USDT. Data shows USDT’s market cap has risen from $137 billion to $163.6 billion since January 1, 2025—a nearly 19% increase year-to-date.
An additional $26 billion in USDT has been issued in 2025 alone, signaling sustained global demand for dollar-backed digital assets.
This growth strengthens confidence in USDT’s reserve structure, especially in light of its Treasury-backed assets, which now provide a significant cushion against market volatility.
Private Stablecoin Issuer Gains Global Financial Influence
Tether’s unprecedented accumulation of government debt underscores a remarkable shift in global monetary dynamics, where a private crypto firm is now a top holder of U.S. sovereign assets.
“Q2 2025 affirms what markets have been telling us all year: Trust in Tether is accelerating,” said CEO Paolo Ardoino.
With institutional trust climbing and demand surging, Tether is poised to play a larger role in global financial flows, particularly as central banks and regulators assess the implications of private stablecoin dominance.
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