Tether, the issuer of USDT, has emerged as the seventh-largest buyer of U.S. Treasury securities in 2024.
In a recent statement, Tether CEO revealed that the company purchased a net total of $33.1 billion in U.S. Treasuries last year, surpassing nations such as Germany, Canada, and Mexico. The company’s global footprint has expanded significantly, with USDT adoption exceeding 400 million users primarily in developing regions.
As of March 21, USDT commands the stablecoin market with a notable 62.45% share out of a total supply of $230 billion, per data analysis. USDT’s market capitalization has reached $143 billion, nearly triple that of its closest competitor, with USD Coin (USDC) sitting at $59 billion.
Tether showcased its financial resilience last year by reporting a record net profit of $13 billion, despite facing regulatory challenges in Europe. The company issued 23 billion USDT in the fourth quarter alone, contributing to a total issuance of 45 billion USDT in 2024.
Despite its impressive acquisition of U.S. Treasuries, Tether may face challenges in the U.S. due to a proposed stablecoin bill that could restrict offshore issuers from participating in U.S. Treasury markets. U.S.-based competitors might benefit from this legislation, but the company remains optimistic about its position in the U.S. Treasury landscape.
At a recent event, the CEO emphasized that Tether’s investments serve to strengthen and diversify U.S. debt markets. He stated, “We’ve done more for financial inclusion than anyone else, and while doing that, we’re buying back U.S. debt. If we were a country, we’d rank as the 18th largest holder of U.S. Treasuries.”
Additionally, U.S. officials continue to advocate for stablecoin-friendly policies, underscoring their importance in preserving the dollar’s dominance in the global market. In a recent speech, calls for clear regulations to facilitate institutional adoption of digital currencies were reiterated.
