Tether Becomes Top 5 Buyer of US Treasury Bills

Tether, the issuer of the USDT stablecoin, has become one of the top buyers of US Treasury bills. With over $122 billion in US Treasury bills and a market cap around $185 billion, Tether allocates about 83% of its reserves to T-bills, driving significant demand for these securities.

In 2024 and 2025, Tether ranked seventh among foreign buyers of US debt and aims to enter the top 10 purchasers in 2026. This growing Treasury exposure supports Tether's profits and reflects a broader trend where stablecoin issuers could become major structural buyers of US government debt.

Tether reported a net operating profit of $1.3 billion in Q2 2026, driven by its USDT stablecoin. The company holds $5.2 billion in excess reserves beyond what is needed to back USDT tokens, primarily invested in short-term U.S. Treasury bonds that generate interest.

This trend could potentially see stablecoin issuers absorbing up to $1 trillion in Treasuries as regulations formalize reserve requirements.