Tether Limited, the issuer of the USDT stablecoin, has become the 19th largest holder of US debt in the world, surpassing countries such as Germany and the United Arab Emirates.
As of the end of the second quarter of 2025, Tether Holdings reported total exposure to government securities of more than $127 billion, consisting of $105.5 billion in direct holdings and $21.3 billion in indirectly acquired instruments. This amount represents an increase of approximately 8 billion pieces compared to the first quarter of this year.
That amount is higher than that of Germany and the United Arab Emirates, which have national debt of $107.7 billion and $107.8 billion, according to the U.S. Treasury’s own data.
Tether’s business model is precisely based on the issuance of USDT backed by liquid assets, primarily US public debt. Each USDT token in circulation is supported by equivalent reserves of these instrumentsThis allows companies to reap financial benefits while providing a stable dollar peg.
This increase in Tether’s participation in the bond market coincides with the growing integration of the private sector with U.S. monetary policy. CriptoNoticias reported on the issuance of sovereign debt and its absorption by digital currency issuers. strengthen global dollar demand and its status as a key currency.
The expansion will see Tether join countries such as Norway and Brazil on the list of major foreign holders of U.S. government debt, strengthening its role at the intersection of traditional finance and digital assets.