Tether becomes 17th largest U.S. debt holder

ambcryptoPublished on 2025-10-31Last updated on 2025-10-31

Key Takeaways

What are Tether’s treasury holdings?

Tether now holds around $135 billion in U.S. Treasuries (direct and indirect exposure), making it the 17th largest holder globally.

Why does this matter?

A private crypto company now holds more U.S. debt than entire nations, signaling stablecoins’ growing influence in global finance.

Tether has cemented its position as one of the world’s largest holders of U.S. government debt, surpassing South Korea to rank 17th globally with approximately $135 billion in Treasury exposure, according to the company’s Q3 2025 attestation report released today.

Record treasury holdings signal growing influence

The stablecoin issuer’s total exposure to U.S. Treasuries reached an all-time high of over $100 billion as of 30 September 2025, making Tether one of the world’s largest holders of U.S. government debt.

Tether holdings

Source: Tether

This positions the company ahead of several nations in the global ranking of Treasury holders. Tether ranks 18th globally among holders of U.S. Treasuries, ahead of Germany, South Korea, and Australia.

The milestone underscores how stablecoins have evolved from niche crypto assets into major players in traditional finance. 

Tether’s Treasury holdings generate significant revenue through interest payments, contributing to the company’s extraordinary profitability.

Massive profits and growth

Tether’s year-to-date net profit surpassed $10 billion through Q3 2025, cementing its status as one of the world’s most profitable private companies. The company projects nearly $15 billion in net profits for 2025, achieving an exceptional profit margin of 99%.

Q3 2025 marked a milestone quarter for Tether, with over $17 billion in new USDT issued, representing one of the company’s strongest performances to date and bringing the total circulating supply to over $174 billion.

The company maintains substantial reserves to back its tokens. Excess reserves stood at $6.8 billion as of 30 September 2025, providing a strong buffer. Additionally, the company’s gold and bitcoin reserves stood at $12.9 billion and $9.9 billion, respectively.

USDT dominance despite regulatory pressure

Tether’s USDT fell from 70% market dominance in November 2024 to 59.9% by October 2025, as competitors gained ground and European regulations restricted its use. However, this percentage decline masks continued absolute growth.

USDT added nearly $50 billion in supply between November 2024 and October 2025, even as its percentage share contracted.

The stablecoin market itself has expanded dramatically. 

The stablecoin market has grown to around $316 billion in 2025, with Tether maintaining its position as the clear market leader despite rising competition from Circle’s USDC and newer entrants.

Strategic U.S. market entry with USAT

Tether announced plans to launch USAT, a U.S.-regulated stablecoin designed specifically for American markets. 

USAT will be designed to comply with the recently enacted U.S. stablecoin law, the GENIUS Act, and will provide businesses and institutions with a digital alternative to cash and traditional payment rails.

USAT will be issued by federally regulated crypto bank Anchorage Digital, and will have as its designated reserve custodian and preferred primary dealer Cantor Fitzgerald. 

The new stablecoin addresses regulatory requirements while allowing USDT to continue serving global markets.

Beyond stablecoins

In October, Tether completed the settlement of the Celsius litigation using proprietary investment capital, without affecting the reserves backing the token in circulation. 

The company faces one remaining civil litigation case related to Bitcoin price movements in 2017-2018.

Tether Holdings has applied for an Investment Fund License in El Salvador under the newly adopted Private Alternative Investment Fund law, further expanding its regulated operations.

The company also launched a share buyback initiative with potential institutional participation, while maintaining its multi-billion-dollar excess reserve buffer.

“Investors and users alike continue to turn to USDT as the most reliable and liquid digital dollar,” said Paolo Ardoino, CEO of Tether. “With its all-time high exposure to U.S. Treasuries, Tether stands as a pillar of stability in the financial and tech ecosystem.”

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