Daniel Walker
Tether, the issuer behind the largest U.S. dollar-pegged stablecoin USDT, revealed in its latest quarterly report that its total exposure to U.S. Treasurys climbed to nearly $120 billion by the end of March 2025.
This figure, according to the report published on Thursday, includes both direct holdings and indirect exposure through money market funds and reverse repo agreements. Specifically, $99 billion is directly held in U.S. Treasurys, underscoring Tetherโs growing footprint in traditional financial instruments.
Tether announced that its operations generated over $1 billion in profit from its traditional investment activities during the first quarter. These earnings contribute to the companyโs ongoing strategy to back its digital assets with highly liquid and conservative assets, primarily U.S. government securities.
USDT remains the largest stablecoin globally, with a circulating supply exceeding $149 billion, and is widely used in crypto trading, remittances, and decentralized finance (DeFi). Tetherโs quarterly attestation reports, prepared and verified by the independent accounting firm BDO, offer a breakdown of its reserve assets and financial activity.
Tether Diversifies Into Tech and Energy
Beyond Treasury instruments, Tether continues to diversify its portfolio, allocating over $2 billion toward strategic long-term initiatives. These include sectors such as:
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Renewable energy
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Artificial intelligence
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Decentralized communication systems
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Data infrastructure projects
The company emphasized that these investments are designed to support the broader digital asset ecosystem and promote financial independence through technology.
Regulatory Oversight Begins in El Salvador
The first quarter of 2025 also marked Tetherโs inaugural fiscal period under regulatory scrutiny in El Salvador, the country where it recently established its global headquarters. This move signals a shift toward greater transparency and compliance, aligning with El Salvadorโs pro-crypto regulatory environment.
U.S. Treasurys: A Comparative Look
To put Tetherโs Treasury exposure in context, Japan currently holds the largest share of U.S. Treasurys globally, with approximately $1.1 trillion in holdings, according to data from Reuters. While Tetherโs stake is considerably smaller, its rapid growth in this asset class highlights the increasing influence of crypto firms in traditional markets.
