Tether, the issuer of the largest stablecoin USDT, now holds more U.S. Treasury bills than Germany. As of the first quarter of 2025, Tether’s Treasury holdings exceeded $120 billion, surpassing Germany’s $111.4 billion.
This shift reflects Tether’s strategy of spreading its reserves across different assets to manage risks in a volatile crypto market.
The information comes from Tether’s Q1 2025 attestation report, which details the company’s conservative reserve management and its role in providing dollar-based liquidity globally.
Tether’s Growing Treasury Holdings
Data from the U.S. Department of the Treasury shows that Tether now ranks as the 19th largest holder of Treasury bills among all entities.
The company moved ahead of countries like Canada, Taiwan, Mexico, Norway, and Hong Kong. By accumulating over $120 billion in short-term government debt, Tether has secured a reliable source of income to support its stablecoin operations.
Top Five U.S. T-Bill Holders
A chart included in the attestation report shows the leading holders of U.S. Treasury bills.
According to the data, the five entities with the largest T-bill holdings are the United States itself, Japan, China, the United Kingdom, and Luxembourg.
Strong Reserve Strategy
Tether’s latest attestation report highlights over $1 billion in operating profit from traditional investments in Q1 2025. The gains came from strong performance in its U.S. Treasury portfolio.
Meanwhile, gold holdings helped balance out any losses from crypto volatility.
Tether’s total reserves exceed $151 billion, according to its disclosure. The reserve ratio stands at 128.57%, meaning the firm holds far more assets than the stablecoins it has issued.
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By keeping a significant portion of assets in U.S. Treasury bills, Tether can meet redemptions without being forced to sell digital assets at a loss. The strategy of diversifying across both traditional and digital assets aims to maintain confidence in USDT’s pegged value.
Launch of Tether.ai
Tether CEO Paolo Ardoino revealed that the company will soon roll out Tether.ai. This new platform is designed to merge USDT and Bitcoin payments with artificial intelligence tools. Tether.ai will be fully open source, allowing anyone to adapt it to different hardware and devices.
The goal is to enable developers to build apps that use stablecoins and Bitcoin in a seamless way, supported by AI features.
By integrating blockchain payments with AI, Tether.ai hopes to create new use cases in decentralised finance and beyond. The open-source nature of the project means it may evolve rapidly based on community feedback.
Stablecoin Regulations and U.S. Market Entry
As lawmakers debate new rules for stablecoins, Tether’s leadership expects that clearer regulations will drive further adoption of USDT.
The STABLE Act, passed by the House Financial Services Committee in early April 2025. It still awaits a full House vote.
Meanwhile, the GENIUS Act stalled in May after facing pushback from lawmakers concerned about political conflicts, including ties to former President Trump’s ventures.
Despite the regulatory uncertainty, Tether is preparing to introduce a stablecoin tailored for U.S. users. A new version of USDT is in the works that will meet any additional domestic rules.
By offering a U.S.compliant stablecoin, Tether aims to capture demand from American investors and businesses. The company hopes that once regulators lay out clearer guidelines, more capital will flow into USDT, further boosting its Treasury holdings.