Tether has become one of the largest holders of U.S. Treasury securities, surpassing several national economies. By the third quarter of 2024, its exposure to U.S. Treasuries had reached approximately $102.5 billion, a staggering figure that places it as the seventh-largest holder globally. This number exceeds the holdings of countries like Canada and Norway, demonstrating the increasing financial power of stablecoin issuers.
For context, as of January 2025, Japan remains the largest holder of U.S. Treasuries with approximately $1.079 trillion, followed by China at around $760.8 billion. Tether’s growing role in the Treasury market signifies how cryptocurrency-backed institutions are now playing a central role in global finance, once dominated by sovereign nations and traditional banks.
Tether’s financial performance in 2024 was equally impressive. The company reported over $13 billion in net profit, with group equity surpassing $20 billion. The firm has also expanded its investments into various industries, including Bitcoin mining, artificial intelligence, and telecommunications. These moves reinforce its commitment to diversification beyond just stablecoin issuance.
The increasing demand for U.S. Treasuries from Tether and other private entities could have significant economic implications. As global debt markets remain volatile, the rise of crypto firms as major buyers of government debt introduces new variables into an already complex financial landscape. Whether regulators intervene or allow this trend to continue remains to be seen.