Tether Acquired $65 Billion in US Treasury Bonds in Q1 2025

Source Beincrypto

Tether just released its Q1 2025 Attestation Report, describing a massive increase in US Treasury bond holdings. The firm purchased over $65 billion in these assets between January 1 and the end of the quarter.

Tether’s report also repeatedly mentioned a potential role in global US dollar flows, calling USDT “the leading digital representation” of this currency. The firm’s treasury holdings now represent more than 80% of its total assets.

Why is Tether Buying US Treasury Bonds?

When Tether, the world’s largest stablecoin issuer, publicized its Q4 2024 Attestation Report, it reported $33 billion in held US Treasury bonds.

An entire quarter has since passed, and the firm’s newest report details a massive pattern of acquisitions. By March 31, it held $98.5 billion in Treasury bonds, with another $21.3 billion in indirect exposure.

Tether's Indirect Treasury ExposureTether’s Indirect Treasury Exposure. Source: Tether

The company’s report further claims that its total assets amount to $149.2 billion. In other words, more than 80% of Tether’s assets are directly and indirectly held in US Treasury bonds.

Comparatively, it only holds $7 billion in BTC, which the firm has consistently acquired in the past.

Rumors suggested that the firm would de-prioritize Bitcoin to better align with US stablecoin regulations, and this event may be taking place. If proposed legislation becomes law, the US will require Tether to hold most of its reserve assets in Treasury bonds. Thanks to these acquisitions, that requirement has been fulfilled.

Tether has been reorienting its business in a few key ways to facilitate compliance with US regulations. In late March, President Trump suggested that stablecoins could support dollar dominance, and Tether seems interested in this goal.

The report repeatedly mentioned concepts like “Tether’s growing role in distributing dollar-denominated liquidity” and “supporting the global relevance of the US dollar in a rapidly evolving economy.”

The firm described USDT as “the leading digital representation of the US dollar,” and its CEO, Paolo Ardoino, echoed these sentiments:

“Our mission is clear: to responsibly and compliantly power the digital economy and strengthen the role of the US dollar on the global stage,” he claimed.

If Tether wants to take on this transformative role, its massive US Treasury holdings will substantially help that task. Its holdings are vastly larger than most governments’, to the extent that it could move the global treasury market.

Overall, these purchases will likely drive Tether’s substantial business ventures in the US market soon.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Ark Invest’s Cathie Wood Predicts Bitcoin To Hit $1.5 Million By 2030 — Here’s WhyCathie Wood, the CEO of asset management firm Ark Invest, has backed Bitcoin (BTC) to achieve a $1.5 million price point by 2030.
Author  Bitcoinist
May 19, Mon
Cathie Wood, the CEO of asset management firm Ark Invest, has backed Bitcoin (BTC) to achieve a $1.5 million price point by 2030.
placeholder
Gold price struggles to lure buyers as easing Middle East tensions offsets weaker USDGold price (XAU/USD) is trading higher during the Asian session on Wednesday and looking to build on the previous day's modest bounce from sub-$3,300 levels, or over a two-week low.
Author  FXStreet
Jun 25, Wed
Gold price (XAU/USD) is trading higher during the Asian session on Wednesday and looking to build on the previous day's modest bounce from sub-$3,300 levels, or over a two-week low.
placeholder
Solana (SOL) Breakout Watch: Price Could Rally Hard Above $150 Level?Solana started a fresh increase from the $125 zone. SOL price is now consolidating gains and aims for more gains above the $150 level.
Author  NewsBTC
Jun 25, Wed
Solana started a fresh increase from the $125 zone. SOL price is now consolidating gains and aims for more gains above the $150 level.
placeholder
Coinbase Hits New All-Time High — Outpaces Bitcoin with 38% Monthly SurgeCoinbase (COIN), the largest U.S.-based crypto exchange, has soared more than 38% over the past month, breaking its previous all-time high set in November 2021.
Author  TradingKey
Jun 27, Fri
Coinbase (COIN), the largest U.S.-based crypto exchange, has soared more than 38% over the past month, breaking its previous all-time high set in November 2021.
placeholder
Gold price declines to fresh two-week low, further below $3,300 ahead of US PCE dataGold price (XAU/USD) attracts fresh sellers following the previous day's directionless price move and slides back below the $3,300 mark during the Asian session on Friday.
Author  FXStreet
Jun 27, Fri
Gold price (XAU/USD) attracts fresh sellers following the previous day's directionless price move and slides back below the $3,300 mark during the Asian session on Friday.
goTop
quote