Tether Surpasses Germany in U.S. Treasury Holdings, Reaching $120B in Q1 2025

Tether Climbs to 19th Largest Holder of U.S. Treasurys

Tether, the issuer of the world’s largest stablecoin, USDT, has exceeded Germany’s $111.4 billion in U.S. Treasury holdings, officially holding over $120 billion in Treasury bills as of Q1 2025.

According to data from the U.S. Department of the Treasury and the company's latest attestation report, this makes Tether the 19th largest holder of U.S. government debt—higher than many sovereign nations.

“This milestone reinforces our conservative reserve management strategy and underlines our expanding role in distributing dollar liquidity globally,” Tether stated.

In 2024, Tether was already one of the largest buyers of U.S. Treasurys, ranking 7th overall and surpassing countries like Canada, Taiwan, Mexico, and Hong Kong.

Foreign countries by US Treasury holdings. Source: Ticdata.treasury.gov

U.S. Treasury bills, considered among the safest and most liquid investments globally, are a key part of Tether’s reserves supporting its dollar-pegged stablecoin.

Traditional Assets Shield Tether From Crypto Market Turbulence

Tether’s growing reserve of U.S. Treasurys and gold helped the company weather volatility in the crypto markets during the first quarter of 2025.

The firm reported over $1 billion in operating profit from its traditional investments during Q1. According to the report, gold reserves almost entirely offset losses stemming from the broader crypto market downturn.

Source: Paolo Ardoino

Regulatory Clarity May Boost Stablecoin Demand

As the U.S. inches toward regulatory clarity, Tether’s strategic positioning could attract further investment into its stablecoin. Two legislative efforts are central to this outlook:

• The STABLE Act (Stablecoin Transparency and Accountability for a Better Ledger Economy) passed the House Financial Services Committee and awaits a full House vote.

• The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) stalled on May 8 after losing Democratic support due to concerns about potential conflicts of interest tied to former President Trump’s digital asset ventures.

Despite the political hurdles, momentum continues. On May 14, over 60 top crypto founders gathered in Washington, D.C., to advocate for the GENIUS Act, which aims to implement clear collateralization standards and Anti-Money Laundering compliance for stablecoin issuers.

Final Thoughts

Tether’s surge in U.S. Treasury holdings reflects a deliberate shift toward institutional-grade asset backing as part of its reserve strategy. With traditional investments buffering market swings and new regulations on the horizon, Tether is positioning itself not just as a crypto-native product, but as a major global player in digital finance.