Tether’s CEO Paolo Ardoino shared a post on X yesterday that Tether was the seventh-largest buyer of US Treasuries in 2024. The company accumulated $33.1B worth of US Treasury securities last year, outranking countries like Canada, Mexico, and Germany.
Since 2023, Tether, the issuer of the world’s largest stablecoin, USDT, has strategically invested in U.S. Treasury securities to back its stablecoin reserves, ensuring sufficient stability and liquidity. This strategy also benefits the United States by increasing demand for government debt, thereby supporting fiscal operations.
Tether is the seventh-largest holder of US Treasuries. Source: Tether
Other private entities also have active investments in US Treasury securities as part of their financial strategies, including private pension funds, insurance companies, mutual funds, and commercial banks. According to data from late 2024, US private pension funds held approximately $1.1T in US Treasury securities, accounting for about 3.7% of the debt held by the public.
Similarly, US insurance companies held around $630B, representing 2.3% of publicly held debt.
Tether’s strategy to invest in the US Treasury has strengthened its reserves as well as its profitability as the company reported $13B in net profits for 2024, largely driven by returns from these Treasury investments.
Vivek weighs in on America’s debt problem
Vivek Ramaswamy, ex-DOGE head, prominent entrepreneur, and political figure, has been advocating for the integration of Bitcoin into corporate treasury strategies. Ramaswamy anticipates that after the “era of easy money,” corporations and state institutions will increasingly adopt Bitcoin as a standard for internal capital investment, viewing it as a means to maximize long-term shareholder value.
Interest payments on our national debt already exceed the U.S. military budget & rising interest rates are burdening everyday Americans who want to buy homes & live their lives. This is unsustainable. The right answer is to reduce reckless government spending. But in the… https://t.co/K0xm6rJnYN
Responding to Ardoino’s post about Tether’s acquisitions of US Treasury securities, Ramaswamy stated that the right answer to reducing rising interest rates is to reduce reckless government spending.
“Interest payments on our national debt already exceed the US military budget & rising interest rates are burdening everyday Americans who want to buy homes & live their lives. This is unsustainable. The right answer is to reduce reckless government spending. But in the meantime, we also need more (not fewer) buyers of US Treasuries. Thankfully the US dollar is still the reserve currency of the world. We need to keep it that way,” Ramaswamy wrote.
Ardoino further explained the impact of his strategy so far. “Tether brings the U.S. Dollar to more than 400 million people predominantly in emerging markets and developing countries. Without doubts Tether built the biggest distribution network for the U.S. Dollar, physical and digital, in the history of humanity,” he said.
Tether is now one of the largest private holders of US Treasury securities
According to a data compilation from Tether’s reserve reports and the US Treasury Department, Tether, the crypto company behind the largest stablecoin USDT, purchased a net $33.1B worth of US Treasury securities in 2024.
Tether was the 7th largest buyer of U.S. Treasuries in 2024, compared to Countries 🤯 pic.twitter.com/fEANUL3fb2
The compiled data posted by the company’s CEO, Paolo Ardoino, shows that the company ranked as the seventh-largest net buyer of US Treasury securities in 2024, ahead of countries like Canada, Mexico, and Germany in the ranking. On the other hand, Japan and China were net sellers, reducing their US Treasury holdings. Brazil, Ireland and India also sold off their holdings.
By the end of 2024, Tether’s US Treasury holdings had reached a record amount of $113B, making it one of the largest private holders of US government debt.
Treasury Secretary Scott Bessent said earlier this month that crypto and stablecoins are key to preserving the US dollar’s global dominance. President Trump echoed this sentiment through a pre-recorded message at the Digital Asset Summit.
Tether has also been actively working towards enhancing its transparency by engaging with a Big Four accounting firm to conduct a full audit of its reserves.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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