Tether Emerges as a Major U.S. Debt Holder with $135 Billion in Treasuries, Earning Over $10 Billion in Annual Profits

Stablecoin Giant’s Expanding Treasury Portfolio Reshapes the Line Between Crypto and Traditional Finance

TL;DR

• Tether’s U.S. Treasury exposure has ballooned to roughly $135 billion, ranking it as the 17th-largest holder of U.S. government debt worldwide.
• The company has generated over $10 billion in net profit for 2025 so far, driven by interest income from Treasuries and rapid USDT issuance.
• Circulating USDT supply surpassed $174 billion, backed by $6.8 billion in excess reserves and additional gold and Bitcoin holdings.

Tether, the issuer of the world’s largest stablecoin USDT, has quietly evolved into one of the biggest private holders of U.S. government debt, with an exposure nearing $135 billion as of the third quarter of 2025. This scale places the company just behind sovereign nations such as Germany and Luxembourg, effectively ranking it 17th among global U.S. debt holders, according to data reported by industry sources this week. The development underscores the accelerating convergence between the cryptocurrency sector and traditional finance, where a stablecoin issuer now sits alongside nation-states in the Treasury market.

The stablecoin firm’s swelling Treasury portfolio has been fueled by record profits and relentless token demand. Tether recorded more than $10 billion in net income year-to-date, with full-year projections estimated at around $15 billion, implying an eye-popping profit margin close to 99%. The company’s business model is straightforward but highly lucrative: every USDT issued is backed by reserves—predominantly U.S. Treasuries—that yield interest, generating billions in passive income while maintaining its dollar peg. Analysts note that with current Treasury yields hovering above 5%, the environment has turned the stablecoin reserve model into a high-revenue engine.

The firm’s reserve buffer—essentially capital held in excess of liabilities—reached $6.8 billion by the end of September 2025. Its total reserve composition includes a mix of gold holdings valued at about $12.9 billion and Bitcoin worth roughly $9.9 billion, reflecting a growing diversification strategy beyond Treasuries. Despite maintaining a commanding lead in the stablecoin market, Tether’s dominance has slightly declined over the past year, slipping from about 70% to 59.9% market share. Yet, the absolute supply of USDT continues to surge, expanding by nearly $50 billion between November 2024 and October 2025, and surpassing $174 billion in circulation following the issuance of over $17 billion in new tokens during the third quarter alone.

Tether’s mounting exposure to U.S. government securities has effectively turned the private company into a quasi-sovereign investor. Its Treasury position now exceeds that of several major economies, a fact that some analysts describe as both impressive and concerning. As one industry observer remarked, “A private crypto company now holds more U.S. debt than entire nations, signaling stablecoins’ growing influence in global finance.” The figure illustrates not only Tether’s financial might but also the degree to which the stablecoin ecosystem has become intertwined with the broader macroeconomic system.

Executives at Tether have portrayed this accumulation of Treasuries as proof of the company’s “financial transparency, liquidity, and innovation.” Chief executive Paolo Ardoino emphasized in a prior attestation that the firm’s record profits and swelling reserves demonstrate its “position as a global leader in financial transparency.” However, the unprecedented scale of these holdings also raises critical questions about systemic exposure and accountability. While Treasuries are widely regarded as low-risk assets, such concentration ties Tether’s balance sheet—and by extension, the stability of USDT—to the health and liquidity of the U.S. government debt market.

Observers point out that a 3.9% reserve buffer (calculated from the $6.8 billion surplus over $174 billion in circulation) provides a cushion but not immunity from stress scenarios. Rapid redemptions or sharp interest-rate shifts could expose the firm to liquidity pressures similar to those that have challenged traditional financial institutions. At the same time, Tether’s soaring profitability and expanding reserves have made it a central player in global capital flows, effectively bridging decentralized finance with traditional sovereign debt markets.

The picture emerging from Tether’s latest disclosures is that of a company operating at a scale previously reserved for central banks and nation-states. Its combination of explosive profits, massive Treasury holdings, and global token circulation places it at a pivotal junction of financial evolution—where a crypto-native entity commands influence deep within the backbone of the world’s monetary system.

This article has been refined and enhanced by ChatGPT.