Tether's US Treasury Holdings Reach $125 Billion, Outstanding Germany, UAE, Spain, and Australia: Confirmed by CEO Paolo Ardoino
Paolo Ardoino, CEO of Tether Holdings, has revealed that the company's USDT stablecoin is largely backed by highly liquid and safe US Treasury assets. In a CNBC interview, Ardoino stated that if Tether were a country, it would rank among the top 20 largest foreign holders of US Treasuries, with over $125 billion in US Treasuries and the remainder in other highly liquid assets.
As of March, Germany and the UAE held $111.4 billion and $104.4 billion in US Treasuries, respectively, according to US Treasury data. Tether currently ranks above these two countries, with Japan, China, the United Kingdom, Cayman Islands, Canada, Luxembourg, Belgium, France, Ireland, Switzerland, Taiwan, Hong Kong, Singapore, India, Brazil, Norway, Saudi Arabia, and South Korea holding more US Treasuries than Tether as of March.
Last week, US Treasury Secretary Scott Bessent indicated that stablecoins could serve as a major source of demand for the government debt, citing estimates that they could generate over $2 trillion in demand for US Treasuries and Treasury bills in the short term.
The revelation comes as Tether's reserves have grown, with Tether issuing over $152 billion in tokens. As of the end of Q1 2025, Tether's reserves include nearly $120 billion in U.S. Treasuries, primarily in the form of direct Treasury bills, overnight reverse repurchase agreements, and money market funds with Treasury exposure.
With the priority on stability, liquidity, and security, Tether's strategy reflects a focus on holding primarily U.S. government debt as a means of backing its stablecoin USDT. The company's commitment to using the most liquid and secure government debt available, namely US Treasury instruments, underscores its goal of maintaining global USD₮ liquidity and stability.
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- Cryptocurrency enthusiasts might be interested to know that Tether's reserves, which mainly consist of highly liquid and safe US Treasury assets, have grown to nearly $120 billion, surpassing the holdings of countries like Germany and the UAE.
- In light of this developments, US Treasury Secretary Scott Bessent sees stablecoins like Tether's USDT as a significant source of demand for government debt, potentially generating over $2 trillion in demand for US Treasuries and Treasury bills.
- With a focus on stability, liquidity, and security, Tether's strategy of holding primarily U.S. government debt underscores its goal of maintaining global USD₮ liquidity and stability, reflecting a business model built on using the most liquid and secure government debt available, namely US Treasury instruments.
