Stablecoin issuer Tether has emerged as the world's seventh-largest buyer of United States Treasuries, surpassing established nations like Canada, Taiwan, and Mexico. The $143 billion company now holds more US government debt than numerous sovereign countries.
Tether, which issues USDT, the world's largest stablecoin, has accumulated $33.1 billion in Treasury holdings. This positions the firm behind only major national investors, with the Cayman Islands leading global rankings at over $100 billion, according to Tether CEO Paolo Ardoino.
"Tether was the 7th largest buyer of US Treasurys in 2024, compared to Countries," Ardoino wrote in a March 20 post on X, formerly Twitter.
While Luxembourg and the Cayman Islands figures include "all the hedge funds buying into t-bills," Ardoino noted in subsequent comments that Tether's holdings represent investments from a single corporate entity rather than aggregate national totals. The company utilizes US Treasuries as backing assets for its dollar-pegged stablecoin, as these short-term government debt securities are widely regarded as among the most secure and liquid investments available.
Tether's remarkable treasury acquisition coincides with broader stablecoin adoption among investors and increasing attention from US lawmakers. The total stablecoin market has now exceeded $219 billion and continues to expand, indicating the market is "likely still mid-cycle" rather than at its peak, according to analysts at cryptocurrency research firm IntoTheBlock.
This treasury acquisition strategy comes as US legislative action on stablecoins appears increasingly imminent. Kristin Smith, CEO of industry advocacy group the Blockchain Association, believes lawmakers are preparing to enact rules for stablecoins and cryptocurrency market structure by August.
"I think we're close to being able to get those done for August [...] they're doing a lot of work on that behind the scenes right now," Smith said on March 19 at the Blockworks' 2025 Digital Asset Summit in New York, which was attended by industry publication Cointelegraph.
Her timeline aligns with forecasts from Bo Hines, executive director of the President's Council of Advisers on Digital Assets, who predicted on March 18 that comprehensive stablecoin legislation would emerge within months. The regulatory framework appears to have bipartisan support in Washington.
"I'm optimistic when you have the chairs of the relevant committees in the House and the Senate and the White House that want to do something, and you've got bipartisan votes in Congress to get it there," Smith added.
The legislative momentum follows the March 7 White House Crypto Summit, where US President Donald Trump sat alongside Treasury Secretary Scott Bessent, signaling the administration's engagement with digital asset regulation.