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Tether Ranks as 7th Largest Buyer of U.S. Treasuries in 2024

2 weeks ago
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TLDR

  • Tether purchased $33.1 billion in U.S. Treasury securities in 2024, ranking as 7th largest foreign net buyer
  • This places Tether ahead of countries like Canada, Mexico, and Germany in Treasury purchases
  • USDT’s market cap grew by $45 billion in 2024, reaching $143 billion (62.45% of the $230 billion stablecoin market)
  • Tether reported a record $13 billion net profit in 2024 despite regulatory challenges
  • U.S. officials, including President Trump, have highlighted stablecoins’ role in maintaining dollar dominance

Tether, the company behind the world’s largest stablecoin USDT, has emerged as a major player in the U.S. government debt market. According to data shared by CEO Paolo Ardoino on March 20, 2025, Tether purchased a net $33.1 billion worth of U.S. Treasury securities in 2024.

This massive purchase places the crypto company as the seventh largest foreign net buyer of U.S. Treasuries last year. Tether now outranks several countries including Canada, Mexico, and Germany in Treasury acquisitions.

The data highlights the growing influence of U.S. dollar stablecoins in traditional financial markets. Tether’s position comes behind only the Cayman Islands, France, Luxembourg, Belgium, Singapore, and the United Kingdom in net Treasury purchases.

Ardoino noted that some jurisdictions like the Cayman Islands and Luxembourg represent multiple entities. “Indeed, Lux and Cayman numbers include all the hedge funds buying into t-bills,” he explained on social media.

While Tether made substantial purchases, other major economies reduced their holdings. Japan and China were net sellers in 2024, cutting their U.S. Treasury positions by large amounts.

Tether’s Treasury holdings now total approximately $94 billion as of December 2024. These investments help maintain the stability and backing of the USDT stablecoin.

Stablecoin Dominance and Financial Growth

USDT continues to dominate the stablecoin market. It currently represents 62.45% of the total $230 billion stablecoin supply, according to DeFiLlama data.

The stablecoin’s market capitalization has reached $143 billion. This is nearly three times larger than its closest competitor, Circle’s USDC, which stands at $59 billion.

Tether reported strong financial results in 2024 despite facing regulatory challenges in Europe. The company posted a record $13 billion net profit for the year.

The stablecoin issuer maintained rapid growth, issuing 23 billion USDT in the fourth quarter alone. This contributed to a total issuance of 45 billion USDT throughout 2024.

Tether’s global user base has also expanded. Ardoino reported that USDT adoption has surpassed 400 million users, with most coming from developing nations.

Despite its success, Tether may face hurdles in the U.S. market. A proposed stablecoin bill could restrict offshore issuers from accessing U.S. Treasury markets, potentially benefiting U.S.-based competitors like USDC.

At a March 11 event hosted by the Bitcoin Policy Institute, Ardoino defended Tether’s role in the financial system. “We’ve done more for financial inclusion than anyone else,” he stated. “And while doing that, we’re buying back U.S. debt. If we were a country, we’d be the 18th largest holder of U.S. Treasuries.”

U.S. officials have recognized the importance of stablecoins for American financial influence. Treasury Secretary Scott Bessent recently stated that crypto and stablecoins are key to preserving the U.S. dollar’s global dominance.

President Donald Trump echoed this sentiment during a pre-recorded message at the Digital Asset Summit on March 20. Trump said that “crypto will expand the dominance of the U.S. dollar” and called on Congress to pass clear regulations to encourage institutional adoption.

Source: https://blockonomi.com/tether-ranks-as-7th-largest-buyer-of-u-s-treasuries-in-2024/