TLDR
- Tether purchased a net $33.1 billion in U.S. Treasury securities in 2024, ranking it as the 7th largest foreign net buyer
- This puts Tether ahead of countries like Canada, Mexico, and Germany in Treasury purchases
- Tether currently holds approximately $94 billion in U.S. Treasuries as of December 2024
- The data highlights the growing influence of U.S. dollar stablecoins in the government debt market
- Both Trump and Treasury Secretary Scott Bessent have indicated crypto and stablecoins are key to preserving U.S. dollar dominance
Tether, the company behind USDT, the world’s largest stablecoin, has become a major player in the U.S. Treasury market. According to data shared by CEO Paolo Ardoino on March 20, the firm purchased a net $33.1 billion worth of U.S. Treasury securities in 2024.
Tether was the 7th largest buyer of U.S. Treasuries in 2024, compared to Countries 🤯 pic.twitter.com/fEANUL3fb2
— Paolo Ardoino 🤖 (@paoloardoino) March 20, 2025
This puts Tether in an unexpected position. The crypto company now ranks as the seventh largest foreign net buyer of U.S. Treasury securities, surpassing countries like Canada, Mexico, and Germany.
The data comes from Tether’s own reserve reports and the U.S. Treasury Department. It shows how a crypto company has become a key force in traditional financial markets.
While Tether made large purchases, some major countries went in the opposite direction. Both Japan and China were net sellers, significantly reducing their U.S. Treasury holdings during the same period.
The Cayman Islands emerged as the largest buyer of U.S. Treasuries in 2024. They accumulated more than $100 billion according to Ardoino’s data.
However, Ardoino clarified an important point about these numbers. The large Treasury purchases in places like the Cayman Islands and Luxembourg don’t represent single entities.
“Indeed, Lux and Cayman numbers include all the hedge funds buying into t-bills,” Ardoino explained on social media.
These figures cover many financial institutions based in these areas, all purchasing U.S. Treasuries independently.
Other major buyers included France, Luxembourg, Belgium, Singapore, and the United Kingdom. Each added to their Treasury holdings throughout 2024.
Tether’s growing Treasury portfolio serves a specific purpose. These investments help maintain the functionality of its USDT stablecoin.
U.S. Treasury bonds are considered safe and liquid assets. They provide the collateral needed to ensure USDT remains stable and fully backed.
Tether holds $94 billion in U.S. Treasuries
As of December 2024, Tether holds approximately $94 billion in U.S. Treasuries. This makes up a substantial portion of the assets backing the USDT stablecoin.
The trend extends beyond just Tether. Circle’s USDC, the second-largest stablecoin, increased its market capitalization by $19 billion last year.
USDT’s market cap grew even more dramatically. It expanded by $45 billion during the same period.
This growing influence has caught the attention of U.S. government officials. Treasury Secretary Scott Bessent recently stated that crypto and stablecoins are key to preserving the U.S. dollar’s global dominance.
President Trump echoed similar sentiments. At a pre-recorded message delivered at the Digital Asset Summit on March 20, Trump said that “crypto will expand the dominance of the U.S. dollar.”
The data underscores how stablecoins have become an important force of demand in the U.S. government debt market. As the stablecoin market continues to grow, its impact on Treasury markets may increase further.
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