Tether (USDT) Surpasses Canada to Become the Seventh-Largest Holder of US Treasuries

Tether, the issuer of USDT, has become the seventh-largest holder of US Treasuries, surpassing Canada, Taiwan, Mexico, Norway, and Hong Kong.

Tether, the issuer of USDT, has become the seventh-largest holder of US Treasuries, surpassing Canada, Taiwan, Mexico, Norway, and Hong Kong, according to a recent post by Paolo Ardoino, the CEO of the company.

The stablecoin company has acquired over $33.1 billion in US Treasury bills, placing it only behind Japan, China, the UK, France, and Germany in terms of Treasury holdings.

“We are now the 7th largest holder of US Treasuries. Only Cayman Islands have more, with over $100 Billion. Luxembourg and Cayman Islands include hedge funds investments, while all of Tether’s holdings come from a single entity,”

read the post by Ardoino on Monday.

Tether’s US treasury holdings are part of its strategy to support the USDT stablecoin with liquid and low-risk assets. These short-term government securities play a crucial role in ensuring the backing of USDT remains stable.

Moreover, Tether’s stablecoin is the largest in the market, with a market capitalization exceeding $143 billion.

The stablecoin market has seen substantial growth in recent years, with the total supply of stablecoins now surpassing $219 billion, according to data from IntoTheBlock.

The data indicates that the crypto bull market is still mid-cycle and has more room to run.

"We are still in the middle of the crypto bull market, and it has the potential to reach even greater heights. The fact that we are seeing an increase in stablecoin issuance is a testament to the growing adoption of crypto in financial markets,"

a crypto analyst at IntoTheBlock stated.

The increase in stablecoin issuance also suggests that investors continue to allocate funds to digital assets.

As the stablecoin market expands, US lawmakers are advancing discussions on stablecoin regulations.

Kristin Smith, the CEO of the Blockchain Association, stated that a stablecoin bill may be finalized by August 2025.

Smith spoke at Blockworks’ Digital Asset Summit, where she highlighted the progress being made on crypto legislation.

"I think we're close to being able to get those done for August ... they're doing a lot of work on that behind the scenes right now,"

Smith said on Monday at the New York Summit.

Her comments followed a report by the House Financial Services Committee in December, which proposed a framework for regulating stablecoins.

The report, titled "The Future of Money: A Select Economic Recovery and Bipartisan Policy Center Study on the Use of Digital Currencies and Blockchain Technology in Financial Services," aimed to guide lawmakers in drafting legislation for the new year.

The committee's recommendations included allowing banks to hold a limited amount of crypto, such as Bitcoin, and establishing a new regulatory body for stablecoins.

Additionally, the report suggested that crypto firms should be able to use an existing federal deposit insurance program to protect customer deposits held by crypto banks.

The report also touched upon the need for a uniform set of rules for cross-border payments and cross-border data privacy to support the seamless use of digital assets across different countries.