Tether makes its entrance among the major holders of US Treasury securities, surpassing significant economies such as Canada, Taiwan, Mexico, Norway, and Hong Kong.
This is an indication of how the stablecoin market continues to grow rapidly, with increasingly widespread adoption among both investors and US regulators.
Why does Tether invest in US Treasury securities?
According to Paolo Ardoino, CEO of Tether, the company has purchased over 33.1 billion dollars in US Treasury securities, positioning itself in seventh place globally.
This data places Tether ahead of several national economies, although still far from the lead of the Cayman Islands, which have accumulated over 100 billion dollars in U.S. securities.
Ardoino emphasized that while the value held by the Cayman Islands and Luxembourg results from the sum of investments by numerous hedge funds, the Tether data represents the purchase by a single entity.
The investment of Tether in U.S. Treasury bills is part of the strategy to strengthen the company’s reserve backing.
Being short-term securities issued by the United States government, these assets are considered among the most secure and liquid available on the market.
Being a stablecoin pegged to the US dollar, Tether must maintain high security on its reserves to ensure the credibility and stability of its USDT token, the largest in the sector.
The accumulation of government bonds allows Tether to consolidate its position and protect investors from possible fluctuations.
The stablecoin sector is experiencing a period of strong expansion, with a total capitalization that has recently exceeded 219 billion dollars.
The analysts at IntoTheBlock emphasize that this growth indicates a market still far from reaching its peak. Suggesting therefore that the current bull trend might be only mid-cycle.
The increase in demand for stablecoins is a clear signal of the growing confidence of investors in the sector. This phenomenon is supported by new legislative initiatives that aim to regulate the use of stablecoins and establish a clearer regulatory framework.
New USA regulations on stablecoins coming by August
In the United States, legislators are speeding up the process to introduce clear regulations on stablecoins and the structure of the bull market and bear market of cryptocurrencies.
According to Kristin Smith, CEO of the Blockchain Association, a detailed regulatory framework could be defined by August 2024.
During the Digital Asset Summit 2025 by Blockworks, Smith stated that the work behind the scenes on regulations is in an advanced stage.
Even Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, reiterated that the adoption of specific regulation for stablecoins is imminent.
Smith expressed herself as optimistic about the approval of the new regulations, thanks to the bipartisan involvement between the House, Senate, and White House. The cross-party support could accelerate the legislative process, providing a more solid framework for market operators.
The rise of Tether among the largest holders of US government securities highlights the growing importance of stablecoins in the global financial system. With over 33.1 billion dollars invested in US bonds, the company positions itself among the main players in the sector.
The increase in demand for stablecoin and the impending regulation in the United States could further consolidate the role of crypto-assets in the financial market.
If the current trend continues, stablecoins could become increasingly integrated into the global economic system, attracting a growing number of institutional and retail investors.
