Tether’s Expansion in US Treasury Market
Tether, a significant player in the US Treasury market, has solidified its position as the seventh-largest buyer of government-backed securities in 2024.
Major Acquisitions by Tether
In a recent update on X, Tether CEO Paolo Ardoino disclosed that the company had purchased $33.1 billion in US Treasuries. This amount surpasses the holdings of several nations, including Canada, Taiwan, Mexico, Norway, Hong Kong, South Korea, Germany, and Saudi Arabia.
Global Purchases Overview
While Tether’s acquisitions are significant, Ardoino highlighted that the Cayman Islands led global purchases with over $100 billion in acquisitions. Following the Cayman Islands are countries like France, Luxembourg, Belgium, Singapore, and the United Kingdom.
It is important to note that holdings from regions like the Cayman Islands and Luxembourg include investments from multiple hedge funds, whereas Tether’s assets are owned by a single entity.
Reserve Strategy with US Treasuries
Tether relies heavily on US Treasuries as a fundamental part of its reserve strategy. These government securities are renowned for being safe and highly liquid assets globally, ensuring the stability of Tether’s USDT stablecoin.
According to Tether’s latest quarterly reserve report in December 2024, the company’s total US Treasury holdings amount to $94 billion, positioning the stablecoin issuer ahead of many countries in terms of its impact on the global financial system.
Supporting US Economic Influence
Ardoino has previously emphasized that Tether’s substantial holdings of Treasuries contribute to US economic influence and play a vital role in maintaining the dollar’s dominance in global trade.
