Tether Eyes U.S. Return with New Stablecoin as Treasury Exposure Surges to $120 Billion

CEO Confirms Strategic Pivot Toward Regulation, Transparency, and Tech Investment

Tether, the issuer behind the world’s largest stablecoin by supply, is preparing a return to the U.S. market with a newly launched dollar-pegged token, signaling a major strategic shift. Confirmed by CEO Paolo Ardoino in a May 2 interview, the move reflects Tether’s bid to reintroduce itself under a more transparent and regulator-friendly image. Long criticized for opacity and links to questionable transactions, the company is now emphasizing close collaboration with law enforcement and legislative bodies in its attempt to redefine its global footprint.

Ardoino underscored the firm’s evolving role, describing Tether as a direct advisor on U.S. crypto regulation. He pointed specifically to the GENIUS Act, a proposed bill that aims to offer clearer regulatory guardrails for stablecoin operations. According to the CEO, Tether helped shape the bill’s provisions designed to empower law enforcement, adding, “There is no company… even in the traditional financial system, that has such a breadth of collaboration with law enforcement.” He argued that Tether’s proprietary tools for detecting and blocking criminal activity now outperform those used by conventional financial institutions.

This regulatory push comes as the company cements its global operations in El Salvador, where it is currently undergoing its first fiscal cycle under formal oversight. With its headquarters now based in the country, Tether has also focused on fortifying its financial credibility. In the first quarter of 2025, it posted over $1 billion in operating profit, mostly from traditional investment income. The firm’s U.S. Treasury exposure surged to nearly $120 billion by the end of March, including approximately $99 billion in direct government debt, and the rest through money market funds and reverse repos. To put that into context, Tether now holds around 10.9% of the U.S. Treasuries that Japan—the largest foreign holder—owns, as of Reuters data from February 2025.

Alongside its robust reserves, Tether maintains $7 billion in excess equity, which Ardoino described as “unprecedented.” He suggested that traditional financial institutions should consider following Tether’s model to improve their product offerings, a notable statement given the historical skepticism toward stablecoin issuers. The company’s reserve data continues to be verified quarterly by accounting firm BDO, whose attestation reports serve as a transparent record for stakeholders.

Tether’s expansion is not limited to financial reserves or regulatory reform. The company has committed more than $2 billion to long-term strategic investments aimed at establishing itself as a major infrastructure player. These initiatives span renewable energy, artificial intelligence, peer-to-peer communication technologies, and data infrastructure—an ambitious pivot that hints at Tether’s broader vision beyond stablecoin issuance.

Despite regulatory headwinds and increasing competition in the sector, Tether’s flagship token, USDT, remains dominant. The dollar-backed stablecoin currently boasts a circulating supply exceeding $149 billion globally, reinforcing its position as the most widely used stablecoin on the market.

This article has been refined and enhanced by ChatGPT.