Tether Ranked 7th Largest Buyer of U.S. Treasuries, Surpassing Major Nations in 2024

• Tether purchased $33.1 billion in U.S. Treasuries, surpassing major countries in 2024.
• USDT’s $33.1 billion investment shows stablecoins’ rising influence in U.S. debt markets.
• Tether’s U.S. Treasury holdings surpass those of Germany, Mexico, and Canada in 2024.

Tether, the issuer behind USDT, the world’s largest stablecoin USDT secured position seven among the largest foreign buyers of U.S. Treasury securities for 2024. Paolo Ardoino revealed through a statement on March 20 that Tether acquired $33.1 billion worth of U.S. Treasury bonds. Furthermore, the company has surpassed nations such as Canada, Germany and Mexico. Through this major market shift, stablecoins, particularly USDT have demonstrated increased significance in the U.S. debt market.

Tether’s Growing Role in the U.S. Treasury Market

Tether CEO Paolo Ardoino confirmed that the firm’s net purchase of U.S. Treasury securities in 2024 reached $33.1 billion, placing it above several major economies. The company continues its rapid expansion through increased participation in U.S. government-backed securities. The acquisition positions Tether among the leading purchasing entities, surpassing purchasing activity recorded by Canada, Mexico, and Germany.

Source; Paolo Ardoino on X

While Tether’s holdings rank it seventh globally, the Cayman Islands, a leading jurisdiction for hedge funds, remains the top purchaser of U.S. Treasuries with over $100 billion in acquisitions. However, Ardoino emphasized that the company’s figures represent investments from a single entity, unlike the broader holdings from regions like the Cayman Islands and Luxembourg, which involve multiple hedge funds.

Tether chose to invest in U.S. Treasuries as part of its USDT stability strategy for maintaining the U.S. dollar-pegged stablecoin. The role of U.S. Treasuries as reserves enhances Tether’s stablecoin credibility because they establish global safety and liquidity standards, maintaining trust for potential token users.

The Impact of Stablecoins on the Global Economy

Tether’s increased U.S. Treasury holdings highlight how stablecoins supported by the U.S. dollar expand their market influence. Stablecoins continue to play an essential role as they rapidly grow in the U.S. Treasury debt market. Additionally, U.S. lawmakers and financial regulators have recently started to pay attention to stablecoins because they are advancing to become key drivers that affect U.S. Treasury supremacy.

U.S. Treasury Secretary Scott Bessent recently pointed out that crypto and stablecoins are essential in ensuring the global influence of the U.S. dollar. Former President Donald Trump echoed this sentiment during a recent appearance at the Digital Asset Summit stressing that crypto could further strengthen the dollar’s global position.

Tether’s substantial holdings of U.S. Treasuries are also part of a broader shift in the stablecoin market. According to analysts, the growing market capitalization of stablecoins, which surpassed $219 billion, suggests that the market is still in a mid-cycle phase rather than reaching its peak.

Legislative Developments in the Stablecoin Market

The adoption of stablecoins in the U.S. Treasury market occurs during lawmakers’ push to define regulations for the stablecoin sector. Kristin Smith, CEO of the Blockchain Association believes that adequate stablecoin regulatory laws could be finalized by August 2025. The proposed legislation seeks to establish a framework for the expanding stablecoin market so stablecoins can maintain their position as trustworthy financial systems.