Tether, the issuer of the leading stablecoin USDT, has overtaken Germany in investments in U.S.
Treasury bonds, according to the company’s CEO, Paolo Ardoino. In a recent post on X, Ardoino commented on a Deutsche Bank chart comparing Tether’s holdings to those of major economies, stating, “In fact, I think we already surpassed Germany.
Next stop — South Korea!” The chart showed Tether narrowly trailing Germany, the UAE, and South Korea.
Tether’s Q1 2025 attestation report reveals that the company holds approximately $120 billion in U.S. Treasury bonds as part of its reserves to maintain USDT’s dollar peg.
This milestone positions Tether as the 19th largest holder of U.S. Treasuries globally, surpassing Germany’s $111.4 billion, as reported by the U.S. Department of the Treasury.
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The company also generated over $1 billion in operating profit from these Treasury investments during the first quarter, highlighting the effectiveness of its conservative reserve management strategy.
Tether’s rapid accumulation of U.S. Treasuries underscores the growing role of stablecoins in traditional finance. In 2024, Tether was the seventh-largest buyer of U.S. Treasuries among foreign entities, outpacing countries like Canada and Mexico.
With USDT’s market capitalization exceeding $150 billion and a 62% dominance in the stablecoin market, Tether continues to bridge the gap between digital and traditional financial systems.
However, this rise also raises questions about transparency, as Tether provides attestations rather than full audits, and the lack of stablecoin regulation remains a concern amid pending U.S. legislation like the STABLE Act.
