Tether Controls Top 10 Holdings of US Treasury Bills, Stablecoin Expansion Drives Surge in Reserves

Tether is accelerating its involvement in the U.S. government debt market. As demand for USDT and the newly launched USAT stablecoin continues to rise, this global leading stablecoin issuer is expected to become one of the top ten buyers of U.S. Treasury securities this year. Currently, Tether holds over $122 billion in short-term government securities, accounting for approximately 83.11% of its total reserves, making it a significant capital force worldwide.

GENIUS Legislation Compliance Requirements Drive Treasury Allocation Upgrades

The introduction of the U.S. federal stablecoin regulation framework, the GENIUS Act, has become a key driver for Tether to expand its Treasury holdings. The law clearly mandates that regulated stablecoins must be fully backed 1:1 with high-quality assets, such as short-term Treasury bills. This strict compliance standard has directly prompted Tether to adjust its reserve structure.

Bo Hines, head of Tether’s U.S. subsidiary and former executive director of the White House Cryptocurrency Council, recently stated at Bitcoin Investor Week, “As we move toward GENIUS compliance standards, it’s clear that we are gradually increasing our reserves in Treasury securities.” After advocating for the law during President Trump’s administration, Hines left in August last year to join Tether, overseeing the company’s compliance strategy. The USAT stablecoin issued by Anchorage Bank is a product under the GENIUS framework, and Tether has committed to maintaining interoperability between USDT and USAT, “ultimately, they are both Tether.”

User Growth Drives Reserve Demand, Quarterly Net Increase of 30 Million Users

Tether’s surge in Treasury purchases is directly driven by its remarkable user growth rate. Since its launch in 2014, USDT has accumulated approximately 530 million users worldwide. According to Hines, this expansion is particularly notable — “We are adding about 30 million users each quarter, which is quite astonishing.”

This rapid growth creates an urgent demand for highly liquid supporting assets. The core promise of stablecoins is to maintain a fixed value, usually equal to $1. To fulfill this promise, issuers must hold sufficient reliable and easily tradable reserve assets. With USDT’s circulation reaching $185 billion, Tether faces the challenge of how to allocate matching reserves. Treasury securities, due to their high safety and strong liquidity, are the most suitable choice. In short, every quarter’s addition of 30 million users directly increases USDT supply, which in turn drives demand for Treasury securities.

Reserve Portfolio Reshaping, Treasury Securities Become Core Asset Support

In Tether’s complex reserve structure, Treasury securities have become the absolute mainstay. According to independent auditor BDO, Tether’s reserves have reached an astonishing scale: $122 billion in short-term government securities, $6.3 billion in excess reserves, and about 140 tons of gold holdings.

The presence of excess reserves provides a safety buffer beyond the minimum requirements for circulating tokens, while gold as a long-term store of value adds extra security to the asset backing. However, Treasury securities remain the backbone of the reserves. Hines explained the rationale behind this choice: “Treasury bills offer the absolute safety of government-backed credit and immediate liquidity, making them an ideal tool to support the stablecoin ecosystem. As regulatory standards tighten, this allocation will be further reinforced.”

Global Standing Rises, Comparable to Sovereign National Reserves

Tether’s role in the international capital markets is quietly changing. According to Hines, Tether has entered the top twenty global holders of Treasury securities. This achievement is particularly noteworthy — in the U.S. Department of the Treasury’s foreign holder rankings, Tether’s Treasury holdings are between Germany and Saudi Arabia, comparable to a national-level reserve scale.

Similarly, in the global gold holder rankings, Tether’s 140 tons of gold place it at thirteenth worldwide, further demonstrating its new identity as a global capital allocator. This not only reflects the vast user base of USDT but also highlights the growing influence of the crypto ecosystem within traditional financial markets.

Policy and Growth Synergy Shape New Stablecoin Economy

Looking ahead, Tether’s holdings of Treasury securities are expected to further increase. On the policy front, the mandatory requirements of the GENIUS Act ensure the necessity of Treasury allocations; on the growth front, the addition of 30 million new users each quarter continues to elevate reserve demands. The combined effect of these forces makes Tether’s position as a top ten U.S. Treasury buyer almost a certainty rather than a prediction.

This development signifies a deep integration between the stablecoin ecosystem and the U.S. government debt market. As the digital dollar issuance expands, the absorption capacity of Treasury securities also increases. For the U.S. Department of the Treasury, large stablecoin issuers like Tether have become emerging and reliable participants in the government bond market, while for the crypto ecosystem, this validates the importance of stablecoins as a bridge connecting traditional finance and the digital economy.