Tether Surges as Major U.S.Treasury Investor
Tether, the company behind the USDT stablecoin, has become a meaningful player in the U.S. treasury market. In 2024, it ranked seventh among the largest buyers of U.S. Treasury securities. Tether’s CEO, Paolo Ardoino, announced on X that the company purchased a net $33.1 billion in U.S. Treasuries last year. This puts Tether ahead of major economies like Germany,canada,and Mexico.
Ardoino also highlighted Tether’s global growth. The stablecoin now has over 400 million users, mostly in developing countries. As of March 21, USDT leads the stablecoin market with a 62.45% share of the $230 billion total supply. Its market cap stands at $143 billion, nearly three times that of its rival, Circle’s USD Coin (USDC).
Tether’s financial strength was evident in 2024 when it reported a record $13 billion net profit. Despite regulatory challenges in Europe, the company issued 23 billion USDT in Q4 alone, contributing to a total issuance of 45 billion USDT for the year.
However, Tether may face challenges in the U.S. A proposed stablecoin bill could limit offshore issuers from accessing U.S. Treasury markets. This could benefit U.S.-based competitors like USDC. Ardoino remains optimistic, arguing that Tether’s investments strengthen U.S. debt markets.
U.S. President Donald Trump and Treasury Secretary Scott Bessent support stablecoin-friendly policies. Trump urged Congress to pass clear regulations to encourage institutional adoption during a virtual speech at Blockworks’ Digital Asset Summit.
