In 2024, Tether emerged as the seventh-largest holder of U.S. Treasuries, acquiring a remarkable $33.1 billion in securities, surpassing nations like Canada and Taiwan.

Tether's CEO, Paolo Ardoino, announced this significant milestone on March 20, underscoring the company's robust investment strategy in U.S. government-backed securities.

These investments in U.S. Treasuries are integral to Tether's reserve strategy, providing stability for its USDT stablecoin, which is recognized as one of the safest and most liquid assets.

This trend illustrates the growing influence of U.S. dollar-backed stablecoins in driving demand for U.S. government debt.

U.S. Treasury Secretary Scott Bessent highlighted the critical role of cryptocurrencies and stablecoins in sustaining the global dominance of the U.S. dollar.

As of December 2024, Tether's total U.S. Treasury holdings reached $94 billion, further solidifying its position ahead of most countries and enhancing its influence in the global financial landscape.

In comparison, Circle's USDC, the second-largest stablecoin, experienced a market capitalization increase of $19 billion, while USDT's market cap surged by $45 billion, largely due to their backing by U.S. government securities.

The stablecoin market has seen substantial growth, surpassing $219 billion, indicating a mid-cycle expansion according to analysts from IntoTheBlock.

Looking ahead, U.S. lawmakers are expected to pass stablecoin legislation by August 2025, which aims to establish regulations for stablecoins and the broader cryptocurrency market.

Tether's significant investments have positioned it as a major player in the U.S. Treasury market, outpacing countries such as Canada, Mexico, and Germany in Treasury purchases.

While the Cayman Islands leads global Treasury purchases with over $100 billion, Tether's assets are notable as they come from a single entity, contrasting with figures from other jurisdictions.

In contrast to Tether's growth, major economies like Japan and China have been net sellers, significantly reducing their holdings of U.S. Treasuries.