Tether, the issuer of the world’s largest stablecoin USDT, has emerged as a major force in global finance, ranking as the seventh-largest buyer of U.S. Treasury securities in 2024, outpacing sovereign nations like Germany, Canada, and Mexico.
The milestone was revealed by Tether CEO Paolo Ardoino in a March 20 post on X (formerly Twitter), where he disclosed that the company had purchased a net $33.1 billion in U.S. Treasuries over the past year. This significant accumulation underscores Tether’s growing influence in the global financial system and its evolving role as a major institutional player.
“If we were a country, we’d be the 18th largest holder of U.S. Treasuries,” Ardoino noted during a March 11 event hosted by the Bitcoin Policy Institute. “We’ve done more for financial inclusion than anyone else—and while doing that, we’re buying back U.S. debt.”
USDT Dominates the Stablecoin Market
Tether’s rise in the Treasury market mirrors its dominance in the stablecoin space. According to DeFiLlama, USDT holds a 62.45% share of the global stablecoin market, with a market cap of $143 billion—more than double that of its nearest competitor, Circle’s USDC, which currently sits at $59 billion.
Adoption has also soared globally, with over 400 million users, especially in emerging economies where access to traditional banking is limited.
Record Profits and Unmatched Issuance
Tether’s financial strength was further demonstrated in 2024, when the company reported a record $13 billion net profit, despite regulatory headwinds in Europe. In Q4 alone, Tether issued 23 billion USDT, contributing to a total issuance of 45 billion USDT for the year.
This growth highlights Tether’s role not just as a payment mechanism, but as a massive buyer of U.S. debt, reinforcing the country’s borrowing power while offering dollar-backed liquidity to underserved regions worldwide.
Potential Regulatory Hurdles in the U.S.
Despite its growing influence, Tether may face new challenges in the United States. A proposed stablecoin bill under review by U.S. lawmakers could limit offshore issuers’ access to Treasury markets. If passed, the legislation might tilt the regulatory landscape in favor of U.S.-based issuers like USDC, potentially restricting Tether’s Treasury buying capabilities.
Still, Ardoino remains optimistic about Tether’s role in U.S. financial markets, emphasizing the company’s contribution to liquidity, stability, and inclusion.
“Tether’s investments strengthen and diversify U.S. debt markets,” he said. “Our impact is both financial and humanitarian.”
Pro-Stablecoin Momentum in U.S. Policy
Meanwhile, former President Donald Trump and Treasury Secretary Scott Bessent have expressed strong support for stablecoin innovation. Speaking at the Blockworks Digital Asset Summit on March 20, Trump called on Congress to enact clear and common-sense regulations that would enable institutional adoption while reinforcing the U.S. dollar’s global dominance.
Outlook
Tether’s rise as a top buyer of U.S. Treasuries adds a new dimension to the debate around stablecoin regulation and national financial strategy. As policymakers consider how to balance innovation, security, and sovereignty, Tether is positioning itself as a critical bridge between crypto markets, emerging economies, and traditional financial systems.
Whether it can continue this momentum in light of potential regulatory challenges will be a key narrative to watch in the months ahead.
