Tether: Diversified Reserve Strategy and Growth Power
Tether, the world's largest stablecoin issuer of USDt (USDT), has surpassed Germany in U.S. government bond holdings, according to data from the U.S. Treasury. With over $120 billion in bond holdings, Tether now ranks 19th among nations in T-bill investments. This achievement not only consolidates a safe reserve management strategy but also emphasizes Tether's increasingly significant role in large-scale USD liquidation distribution.
In 2024, Tether was the 7th largest U.S. bond buyer, surpassing countries like Canada, Taiwan, and Mexico. These bonds are debt securities issued by the U.S. government, considered safe and highly liquid. Tether invests in bonds as an additional reserve asset for its USD-pegged stablecoin.
Tether's traditional reserve portfolio, including bonds and gold, has nearly offset losses from cryptocurrency market volatility in the first quarter of 2025. Tether reports over $1 billion in operating profits from "traditional investments", thanks to the solid performance of its bond portfolio. Gold performance also nearly compensated for cryptocurrency market fluctuations.
With increasing clarity on U.S. stablecoin regulations, there may be additional investments in Tether's USD-pegged stablecoin, part of which will be used to strengthen the company's bond reserves. The industry is currently awaiting progress on two legal regulations: the Stabilization and Accountability for a Better Ledger Economy (STABLE) Act and the Generating Nationwide Innovation for U.S. Stablecoin (GENIUS) Act.
The GENIUS Act, currently awaiting political support, proposes establishing mortgage guidelines for stablecoin issuers and requiring full compliance with anti-money laundering laws. Over 60 major cryptocurrency founders have gathered in Washington to support this act, aiming to create a clearer legal environment for stablecoins.
