Tether Owns $72.5 Billion Worth of U.S. Treasury Bonds and Becomes the Strategic Player on U.S. Debt Market

Tether (USDT) revealed it has become one of the world's largest buyers of U.S. Treasuries amid market volatility. According to a recent announcement by Paolo Ardoino, CTO of Tether, Tether has become one of the largest buyers of U.S. Treasuries in the world with an impressive $72.5 billion.

He wrote in X: “While @Tether_to reached 72.5B exposure in US t-bills, being top 22 buyer globally, above United Arab Emirates, Mexico, Australia, Spain, … $USDt is the most used stablecoin in the world, with a huge focus on emerging markets. For many of these communities USDt is a lifeline to protect themselves and their families from the insane inflation of their national currencies.”

Tether might soon be declared a one of key strategic holders of the U.S. debt as China's ownership of U.S. Treasury debt is down almost $481 billion from peak levels – a very substantial decline, by any means, and the rate of selling is accelerating.

Remarkably, the U.S. government debt increased by $1.45 trillion in just 3 months since the congressional voting for extension of the U.S. debt ceiling. In June, the ceiling of the national debt was increased, and now the mark is approaching $33 Trillion. Over the past five years, the U.S. national debt has increased 53% (from $21.4 trillion to $32.9 trillion).

Tether's role as a financial lifeline for emerging markets comes with increased attention to the long-term stability of these economies, given the significant investment in U.S. Treasuries.