An independent audit of Tether's financial reserves has revealed a monumental milestone: the stablecoin issuer's holdings in U.S. Treasury bills now exceed $127 billion, placing it ahead of major economies like South Korea in the global ranking of U.S. debt holders.1 This achievement highlights a dramatic shift in the global financial landscape, where a private cryptocurrency firm is now a more significant creditor to the U.S. government than some sovereign nations.
According to Tether's Q2 2025 attestation report, conducted by the accounting firm BDO, the company's U.S. Treasury exposure has surged to $127 billion.2 This is a substantial increase that not only reinforces the company's financial strength but also positions it as the 18th largest holder of U.S. government debt globally, surpassing South Korea, which holds approximately $124 billion.3
The growth in Tether's Treasury holdings is directly tied to the success of its flagship stablecoin, USDT. As global demand for a stable, digital representation of the U.S. dollar has grown, Tether's market capitalization has expanded to over $163 billion. To maintain the 1:1 peg of USDT to the U.S. dollar, Tether holds a diversified portfolio of reserves, with U.S. Treasury bills being a primary component.4
This strategic investment has been a key driver of Tether's recent profitability. In the second quarter of 2025, the company reported a net profit of $4.9 billion, largely fueled by the yield generated from its vast Treasury holdings.5 This robust financial performance underscores the company's operational strength and its ability to navigate a volatile market.
The rise of Tether as a major player in the traditional financial system raises questions about the evolving roles of private entities and sovereign states in global finance. As stablecoins continue to gain traction, their influence on capital markets and global monetary policy will likely become a subject of increasing scrutiny for regulators and economists worldwide.