TLDR
- Tether's acquisition of $33.1 billion in U.S. Treasury securities has placed it in the spot of the seventh largest foreign acquirer.
- Tether's treasury acquisitions surpassed those of nations like Canada, Mexico, and Germany, reflecting its growing influence.
- With USDT reaching a market capitalization of $143 billion in 2024, it now accounts for an impressive 62.45% of the entire $230 billion stablecoin market.
- Despite regulatory hurdles, Tether posted a remarkable $13 billion net profit in 2024, marking a record year for the company.
- U.S. leaders, Trump included, have underscored the pivotal role stablecoins play in reinforcing the dollar's global preeminence.
Emerging as a heavyweight in the U.S. Treasury market, Tether bought $33.1 billion worth of bonds in 2024, as revealed by CEO Paolo Ardoino in March 2025.
This impressive purchase positioned Tether ahead of countries such as Canada, Mexico, and Germany in acquiring U.S. Treasuries.
In 2024, Tether's appetite for U.S. Treasuries saw it surpass several countries to become the seventh largest buyer, a remarkable feat. pic.twitter.com/fEANUL3fb2
— Paolo Ardoino 🤖 (@paoloardoino) March 20, 2025
The expanded use of U.S. dollar stablecoins in traditional financial systems is evident, with Tether trailing only a few regions like the Cayman Islands and Luxembourg in net Treasury purchases.
As noted by Ardoino, regions like the Cayman Islands and Luxembourg include many entities, such as hedge funds, buying into U.S. Treasury bills.
While Tether bolstered its U.S. Treasury holdings, economic powerhouses like Japan and China divested, significantly reducing their U.S. Treasury stakes in 2024.
As of December 2024, Tether owns about $94 billion in U.S. Treasuries, underpinning the stability and backing for its USDT stablecoin.
Dominating the stablecoin arena, USDT holds sway, currently comprising over half of the stablecoin market's total supply valued at $230 billion.
USDT's market value has hit $143 billion, towering nearly threefold over its closest rival, Circle's USDC, which stands at $59 billion.
Despite facing regulatory headwinds in Europe, Tether achieved stellar financial performance in 2024, reporting a net profit of $13 billion.
Tether has issued its Q4 2024 financial attestation.
The company reported $113 billion in direct and indirect holdings.
Highlights as of 31st December 2024:
– $13.7 billion profit for year 2024
– $6 billion profit for Q4 2024
Tether also disclosed having $7 billion in excess reserves, marking a 36% year-over-year growth.
The stablecoin provider demonstrated rapid growth by issuing 23 billion USDT in just the fourth quarter, leading to a total issuance of 45 billion USDT in 2024. https://t.co/izYONstKuF— Paolo Ardoino 🤖 (@paoloardoino) January 31, 2025
Tether's user base continues to burgeon globally, with Ardoino announcing that USDT has surpassed 400 million users, primarily from developing countries.
Potential challenges loom in the U.S., as a proposed stablecoin regulation could restrict offshore issuers from the Treasury market, possibly benefiting local rivals like USDC.
Despite its success, Tether During a March 11 event by the Bitcoin Policy Institute, Ardoino emphasized Tether's role in financial systems, noting its significant role in U.S. debt repurchase.
He asserted Tether's contribution to financial inclusion, claiming its U.S. Treasury holdings would rank it among the top holders if it were a country. Tether’s Acknowledgment of stablecoins' importance has come from U.S. officials, with Treasury Secretary Scott Bessent regarding them as vital to sustainable dollar dominance.
In a recorded address for the Digital Asset Summit, Trump stated that cryptocurrencies will bolster the dollar's leadership on the global stage and urged regulatory clarity.
Maisie is a seasoned Crypto & Financial news journalist with experience writing for various outlets and is the Editor in Chief at Blockfresh.com.
