Key Takeaways
- Tether now ranks as the 7th largest holder of US Treasuries.
- Its $33.1 billion in holdings surpasses Canada, Taiwan, and Mexico.
- US lawmakers aim to pass stablecoin regulations by August 2025.
Tether, the issuer of the world’s largest stablecoin, has become the seventh-largest holder of US Treasuries, surpassing countries like Canada, Taiwan, Mexico, and Norway.
According to CEO Paolo Ardoino, Tether’s Treasury holdings now exceed $33.1 billion.
Comparison with other holders
By comparison, the Cayman Islands ranks first globally, with more than $100 billion in US Treasury purchases.
However, Ardoino noted that figures for jurisdictions like Luxembourg and the Cayman Islands include hedge fund investments, whereas Tether’s holdings come from a single entity.
Role of treasury investments
Tether’s Treasury investments serve as collateral for its US dollar-pegged stablecoin.
US Treasuries are considered among the safest and most liquid assets, making them a key component of Tether’s reserve strategy.
Market expansion
The stablecoin market continues to expand, with total supply surpassing $219 billion.
Analysts from IntoTheBlock suggest that this signals the market is still in a “mid-cycle” phase rather than at the peak of a bull run.
Legislative developments
Meanwhile, US lawmakers are working on stablecoin regulations.
Kristin Smith, CEO of the Blockchain Association, stated that new legislation could pass by August 2025.
Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, also expects stablecoin regulation in the coming months.
Smith emphasized the bipartisan support for stablecoin legislation, saying:
I think we’re close to being able to get those done for August.
