Tether, the issuer of USDT, was identified as the seventh-largest purchaser of U.S. Treasury securities in 2024.
In a post on March 20, Tether’s CEO Paolo Ardoino revealed that Tether (USDT) acquired a net total of $33.1 billion in U.S. Treasuries over the previous year, outpacing countries such as Germany, Canada, and Mexico. In another update, Ardoino highlighted Tether’s rapid global expansion, noting that USDT adoption has now exceeded 400 million users, predominantly in developing regions.
As of March 21, USDT holds the leading position in the stablecoin market, accounting for 62.45% of the total $230 billion supply, according to data from DeFiLlama. The market capitalization of USDT reached $143 billion, nearly triple that of its closest competitor, Circle’s USD Coin (USDC), which stands at $59 billion.
Tether showcased its financial stability last year by reporting an impressive net profit of $13 billion, despite facing regulatory challenges in Europe. The company issued 23 billion USDT just in the fourth quarter, contributing to a total issuance of 45 billion USDT for the year 2024.
While Tether may face challenges in the U.S. despite its significant acquisitions of U.S. Treasuries, proposed stablecoin legislation could restrict offshore issuers from entering U.S. Treasury markets. This change might benefit domestic rivals like USDC at Tether’s expense. Nonetheless, Ardoino remains optimistic regarding Tether’s involvement in the U.S. Treasury market.
At an event hosted by the Bitcoin Policy Institute on March 11, Ardoino argued that Tether’s investments not only bolster but also diversify the U.S. debt markets. He stated, “We’ve done more for financial inclusion than anyone else. And while doing that, we’re buying back U.S. debt. If we were a country, we’d be the 18th largest holder of U.S. Treasuries.”
In the meantime, U.S. President Donald Trump and Treasury Secretary Scott Bessent are advocating for policies favorable to stablecoins, emphasizing their importance in sustaining the dollar’s global strength. During a virtual speech at Blockworks’ Digital Asset Summit on March 20, Trump called on Congress to implement clear, practical regulations to promote institutional adoption.