Tether Becomes Major U.S. Debt Holder with $135B in Treasuries

Sean Williams
Tether

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  • Tether now ranks 17th among global U.S. debt holders with $135B in Treasuries.
  • The GENIUS Act ushers in new regulatory clarity for stablecoins.
  • USDC is narrowing the gap with USDT amid massive transaction growth.

Tether, the issuer of the world’s largest stablecoin USDT, has become the 17th largest holder of U.S. debt, with roughly $135 billion in Treasury bills backing its tokens. That figure places the company ahead of countries such as South Korea and close to Brazil in holdings — a remarkable milestone for a private crypto issuer.

This shift highlights how stablecoins are no longer niche crypto assets but active players in global liquidity markets. By channeling billions into short-term government debt, Tether has effectively become a participant in the U.S. financial ecosystem, influencing bond demand and global money flows.

Regulation Ushers in a New Phase

The recent GENIUS Act, signed by U.S. President Donald Trump, has given stablecoins a clearer regulatory framework. In response, Tether launched USA₮, a fully compliant dollar-backed token tailored for the U.S. market. Rival Circle, issuer of USDC, is also ramping up partnerships and infrastructure, while international players like Japan’s JPYC are expanding to meet growing global demand.

Visa data shows how widespread stablecoin usage has become — $6.4 trillion in transfers over just 30 days. Interestingly, USDC led October’s transaction volumes with $669 billion, edging past USDT’s $607 billion, signaling tightening competition among the top stablecoins.

Tether Expands Beyond Stablecoins

Beyond digital dollars, Tether is venturing into AI technology. Its new platform, Tether Data, recently introduced QVAC Genesis I, a massive synthetic dataset built for science and engineering AI models, along with QVAC Workbench for running AI models locally. The move suggests Tether’s ambitions extend beyond finance, into the infrastructure that could power future technology ecosystems.

Also Read: Tether Unveils Open-Source Wallet Kit for Developers

Trust Defines the Stablecoin Battle

Despite USDC’s transparency edge through BlackRock-managed reserves, USDT still commands around 79% of the total market share as of August 2025. Yet its dominance is slowly waning. October’s flash de-peg event — where USDT briefly traded above $1 while USDC dipped — proved that market trust now hinges on performance and reliability, not just collateral transparency.

Tether’s ascent into the ranks of U.S. debt holders underscores a fundamental convergence between crypto and traditional finance. As regulation solidifies and innovation expands, stablecoins are evolving from payment tools into key pillars of global liquidity and financial technology.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.

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