Tether Moves Toward Top 10 Position in US Treasury Bill Market
- Tether currently holds more than $122 billion in US Treasury bills as core reserves.
- USDT supply approaches 185 billion dollars with broad global circulation growth.
- Tether adds close to 30 million additional users each quarter amid rapid expansion.
Tether expects to rank among the top 10 purchasers of U.S. Treasury bills this year as demand for USDT and its new USAT stablecoin accelerates. Bo Hines, who leads Tether’s U.S. subsidiary, made the projection during remarks at the Bitcoin Investor Week conference in New York City. He said expanding circulation of Tether’s dollar-pegged tokens will require a significant increase in short-term government debt holdings.
At the conference, Hines stated, “This year, I think we’ll end up being a top 10 purchaser of T-bills.” He linked that expectation directly to growth in USDT and the recently launched USAT. According to Tether’s latest attestation, 83.11% of its reserves sit in U.S. Treasury bills, totaling more than $122 billion in short-term government securities.
USDT remains the largest stablecoin by market capitalization, with about $185 billion in circulation. As a result, Tether must maintain substantial reserves to support each token. Treasury bills, widely viewed as safe and liquid instruments, form the core of that backing strategy.
Expanding Reserves and Global Standing
Hines said Tether already ranks among the top 20 holders of Treasury bills worldwide. He noted that this position includes comparisons with sovereign states. In the U.S. Treasury’s ranking of foreign holders, Tether would sit between Germany and Saudi Arabia.
The company’s reserve strength extends beyond government debt. According to accounting firm BDO, Tether holds roughly $6.3 billion in excess reserves. Those additional funds provide an added buffer above the assets required to back tokens in circulation.
In addition to Treasurys and excess reserves, Tether maintains a large gold position. Hines said the company owns about 140 tons of gold. He described Tether as the thirteenth-largest gold holder in the world. Gold serves as a long-term store of value and adds another layer of asset support.
User Growth Drives Treasury Demand
Hines traced the surge in Treasury purchases to user growth. USDT, launched in 2014, now counts about 530 million customers worldwide. “We’re growing at about 30 million a quarter, which is pretty remarkable,” he said during the conference.
That steady expansion increases the need for liquid backing assets. Stablecoins aim to maintain a fixed value, usually equal to one U.S. dollar. To honor that promise, issuers must hold reliable and easily tradable reserves.
With $185 billion worth of USDT in circulation, Tether must match that supply with strong collateral. Therefore, rising token issuance translates into greater demand for Treasury bills. If quarterly growth continues at the current pace, Tether’s share of government debt could climb further.
Could a stablecoin issuer soon stand among the largest buyers of U.S. government debt?
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USAT and GENIUS Act Compliance
Tether’s Treasury demand may also rise due to USAT, which launched late last month. Anchorage Bank issues the token, and it complies with the U.S. federal stablecoin framework known as the GENIUS Act. That law requires regulated stablecoins to maintain 1:1 backing with high-quality assets such as short-term Treasury bills.
Hines previously served as Executive Director of the White House Crypto Council under President Donald Trump. He stepped down in August after lawmakers signed the GENIUS Act into law. He said Tether continues aligning reserves with that compliance standard.
“We’re obviously increasing the amount of T-bills we have in our reserves as we move towards this GENIUS compliance standard,” Hines said. He added that USDT and USAT will remain interoperable, stating, “It’s just Tether at the end of the day.”
As user numbers grow and regulatory standards tighten, Tether continues expanding its Treasury holdings. The company’s reserve composition now links digital dollar issuance directly with the U.S. government debt market.
