Tether Now Holds US$120 Billion in US Treasuries – Surpassing Germany and UAE

Tether, the company behind the world’s largest stablecoin USDT, has emerged as one of the most influential financial players in the global economy, now holding a staggering US$120 billion worth of US Treasury bonds as of Q1 2025.

This data, revealed through Tether’s latest financial disclosures, positions the crypto firm above several advanced economies in terms of US government debt holdings — including Germany (US$111 billion) and the United Arab Emirates (US$104 billion), according to the latest March figures from the US Treasury.

While Tether is not a nation-state, its aggressive accumulation of US Treasuries has turned heads in both traditional finance and crypto circles. The move underscores the company’s significant role not only within the digital asset space but also in global capital markets.

A Financial Heavyweight in Government Debt

Despite being a private entity, Tether’s US$120 billion position places it among the world’s top sovereign debt holders. For context, the largest foreign holders of US debt remain traditional powerhouses like Japan (US$1.13 trillion), the United Kingdom (US$779 billion), China (US$765 billion), and Canada (US$426 billion).

In the Asia-Pacific region, Taiwan (US$297 billion), Hong Kong (US$262 billion), and Singapore (US$199 billion) are among the major holders. But Tether’s rise puts it well ahead of several of these economies — a surprising development for a company that operates in the relatively young and often controversial crypto industry.

What Does This Mean for Crypto and Global Markets?

Tether’s investment strategy has long relied on holding large quantities of short-term US government debt to back its USDT stablecoin — which is pegged 1:1 to the US dollar and used globally for trading, remittances, and decentralised finance.

However, the scale of these holdings now positions Tether not just as a key crypto player but as a major participant in sovereign debt markets. This raises new questions around regulation, transparency, and systemic risk — especially given how deeply integrated USDT has become within global crypto liquidity.

While critics have often questioned the company’s reserves and audit practices, this new milestone signals that Tether is no longer just a crypto company. It's a central force in the evolving bridge between decentralised finance and traditional financial institutions.

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