Tether Overtakes Germany in US Treasury Holdings, Signaling Strength of Its Reserve Strategy

According to the U.S. Department of the Treasury data and Tether’s Q1 2025 attestation report , the stablecoin issuer now holds over $120 billion in U.S. Treasurys, surpassing Germany’s $111.4 billion. Tether is the 19th-largest holder of U.S. government debt among countries and entities globally.

Tether, which issues the world’s most traded stablecoin USDt (USDT), attributes this milestone to its diversified and risk-averse reserve allocation strategy. U.S. Treasurys, known for their high liquidity and minimal risk, form a significant portion of Tether’s backing for its dollar-pegged token.

“This milestone not only reinforces the company’s conservative reserve management strategy but also highlights Tether’s growing role in distributing dollar-denominated liquidity at scale,”

the company noted in its attestation.

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

Despite the first quarter’s turbulence in the broader crypto markets, Tether’s exposure to traditional financial instruments proved advantageous. The firm posted over $1 billion in operating profit, primarily from its Treasury holdings, while gains from gold investments helped cushion market volatility in the crypto space.

As discussions around stablecoin regulation intensify in the U.S., Tether’s robust financial positioning could further attract institutional interest. The industry is watching closely as two key legislative efforts unfold.

The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act— passed by the House Financial Services Committee in early April—is awaiting floor debate in the House of Representatives. Meanwhile, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act encountered a setback on May 8, failing to secure crucial Democratic backing amid concerns about potential conflicts of interest tied to former President Donald Trump’s family’s crypto ventures.

Despite the legislative gridlock, momentum persists. On May 14, more than 60 top crypto founders convened in Washington, D.C., to advocate for the GENIUS Act. The bill aims to impose strict collateralization standards and enforce Anti-Money Laundering compliance among stablecoin issuers.

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