Tether's $114 Billion Treasury Portfolio Fuels Washington's Interest

Tether has become one of the largest customers of the American state, with its insatiable appetite for US debt making it an attractive partner.

The company's reserve portfolio is a significant contributor to this relationship, with $114.96 billion in directly held US Treasury bills as of June 30, accounting for more than 60% of its total reserves.

This has led the Trump administration to consider an overseas stablecoin initiative, which would extend dollar use and support demand for Treasuries, potentially including joint ventures with private companies like Tether.

Tether's reserve management depends heavily on short-term dollar finance, with a weighted average maturity below 90 days for its directly held Treasury bills. Its reserves also include other assets such as precious metals, Bitcoin, and secured loans.