Tether, the company behind the largest fiat-backed stablecoin, USDT, has added $7B in US Treasury bills according to a recent report.
Tether has been recently reported as the most profitable company in the world in terms of profit per employee. Tether realized $13 billion in profits in 2024 and as of 2025, it recorded net profits of $1B and $4.9B in Q1 and Q2, respectively.
At $163.6 billion in market capitalization, Tether's USDT supply increased by $26 billion in 2025. According to data from RWA.xyz, Tether's USDT dominance is at 63.8%, however, defiLlama places USDT's dominance at 61.67% due to higher coverage of active stablecoins.
Notwithstanding, Tether has been a very notable crypto company that whilst not particularly leaning towards the core values of the ecosystem with its primary product, has made commendable contributions to the growth of the industry.
The stablecoin issuer's role is quite important that many often speculate that a USDT crash would greatly hurt the crypto market, including Bitcoin.
Today, Tether has significant exposure to US Treasuries, holding $127 billion in treasury bills of the United States.
Stablecoin-issuer Tether has become the 18th-largest holder of United States Treasurys globally, surpassing the holdings of South Korea, according to a recent attestation report.
On Thursday, Tether said in its attestation report for the second quarter of 2025 that it holds $127 billion in US Treasury bills. The company said it has $105.5 billion in direct US Treasury exposure and $21.3 billion held indirectly.
According to US government data, the company’s current holdings exceed South Korea, which has $124.2 billion. It’s also inching closer to the next country, Saudi Arabia, which holds $127.7 billion in T-bills. – Cointelegraph report
In the first quarter report of 2025, Tether was reported holding $120 billion in US Treasury bills. The Q2 report of $127 billion highlights a $7 billion addition to its treasury holdings, which brings it very close to surpassing Saudi Arabia, which holds $127.7 billion in US Treasury at 17th place.
Tether’s current exposure means that it holds more US government debt than several advanced economies like Norway, India and Brazil. This is an unprecedented position for a private company in the digital asset space.
Investing in US Treasuries is a common practice amongst stablecoin issuers because these are popularly considered low-risk and sustainable means of generating extra income.
With the Genius Act now law, it is expected that more firms or companies will emerge to issue dollar-backed stablecoins and embrace the same system for holding deposits of backings.
This could very much be the start of something new, an age where private firms or publicly traded companies take on significant US debt, becoming the crucial backbone of the $29Trn economy.
Tether's USDT dominance may plummet over the next decade as newer stablecoin issuers emerge and the market inevitably grows into trillions. Several US banks for example have been in talks to potentially launch a jointly managed stablecoin, aiming to leverage combined market strengths to compete.
The future of currencies appears to be in the hands of private firms and public companies as they issue and drive global adoption by tokenizing these currencies and delivering associated on-demand products on-chain.