Tether, the issuer of the popular stablecoin USDT, has emerged as a significant player in the global financial landscape, ranking as the seventh-largest buyer of U.S. Treasury securities in 2024. This achievement highlights Tether’s growing influence in both the cryptocurrency and traditional finance sectors.

Tether’s Massive U.S. Treasury Investments

According to statements by Tether CEO Paolo Ardoino, the company purchased a net $33.1 billion in U.S. Treasury securities last year. This positions Tether ahead of major economies like Germany, Canada, and Mexico in terms of Treasury holdings. Ardoino emphasized that Tether’s global adoption has grown rapidly, with USDT surpassing 400 million users, primarily in developing countries.

USDT Leads the Stablecoin Market

As of March 2024, USDT dominates the stablecoin market, accounting for 62.45% of the $230 billion total supply. Its market capitalization has reached an impressive $143 billion, nearly triple the market cap of its closest competitor, Circle’s USD Coin (USDC), which stands at $59 billion. This strong market position underscores Tether’s leadership in the sector.

Key Financial Performance

Tether demonstrated robust financial strength in 2024, reporting a record $13 billion net profit despite facing regulatory challenges in Europe. The company issued 23 billion USDT in Q4 alone, contributing to a total issuance of 45 billion USDT for the year. These figures reflect the growing demand for Tether’s stablecoin across various regions and use cases.

Potential Regulatory Challenges in the U.S.

While Tether has expanded its acquisition of U.S. Treasuries, the company may face hurdles due to proposed stablecoin legislation in the United States. This bill could limit offshore issuers from accessing U.S. Treasury markets, potentially benefiting domestic competitors like USDC. Despite these challenges, Ardoino remains optimistic about Tether’s role in the U.S. financial ecosystem.

Tether’s Contribution to Financial Inclusion

“We’ve done more for financial inclusion than anyone else,” Ardoino stated during a March event hosted by the Bitcoin Policy Institute. “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.”

Ardoino argued that Tether’s investments not only strengthen the U.S. debt markets but also contribute to broader financial inclusion efforts worldwide.

Support for Stablecoin Policies

Meanwhile, U.S. policymakers, including President Donald Trump and Treasury Secretary Scott Bessent, have pushed for stablecoin-friendly regulations. These policies aim to maintain the dollar’s dominance in global finance and encourage institutional adoption of digital assets. In a virtual address at the Digital Asset Summit, Trump urged Congress to establish clear and sensible regulations for stablecoins, underscoring their importance in the evolving financial landscape.

Tether’s growing presence in U.S. Treasury markets, combined with its leadership in the stablecoin sector, demonstrates its pivotal role in bridging traditional finance and cryptocurrency. As the regulatory environment evolves, the company’s ability to adapt and thrive will be crucial for maintaining its position in the market.

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