Tether, the world’s largest stablecoin issuer, expects to significantly increase its holdings of U.S. Treasury bills this year, potentially making it one of the top 10 buyers globally. The projection comes from Bo Hines, CEO of Tether’s U.S. subsidiary, who outlined the company’s ambitions during a speech at the Bitcoin Investor Week conference in New York.
Hines said growing demand for Tether’s flagship stablecoin, USDT, along with the recent launch of its U.S.-compliant token USAT, is driving a steady expansion of the company’s Treasury purchases.
“This year, I think we’ll end up being a top 10 purchaser of T-bills,” Hines told attendees.
Tether’s Expanding Treasury Footprint
USDT currently has about $185 billion in circulation, making it the largest stablecoin by market capitalization. According to Tether’s most recent attestation, 83.11% of its reserves are held in short-term U.S. Treasury bills, amounting to more than $122 billion.
Those holdings already place Tether among the top 20 global holders of U.S. Treasurys, alongside sovereign nations. Based on U.S. Treasury rankings, the company’s position would place it between countries such as Germany and Saudi Arabia among foreign holders.
The company also reports roughly $6.3 billion in excess reserves, according to accounting firm BDO, providing an additional buffer beyond the assets backing its tokens.
Rapid Growth in Stablecoin Adoption
Launched in 2014, USDT has grown into a central pillar of the digital asset ecosystem, widely used for trading, remittances, and cross-border payments. Hines said the token now serves approximately 530 million customers worldwide and is adding around 30 million users each quarter.
That growth translates directly into higher reserve requirements. Because stablecoins are designed to maintain a one-to-one peg with the U.S. dollar, issuers must hold corresponding assets, typically in highly liquid, low-risk instruments such as Treasury bills.
USAT and Regulatory Compliance Under the GENIUS Act
Tether’s Treasury purchases could accelerate further following the launch of USAT, a new stablecoin issued by Anchorage Bank. Introduced late last month, USAT is structured to comply with the U.S. federal stablecoin framework known as the GENIUS Act. The law requires regulated stablecoins to maintain full 1:1 backing with high-quality assets, including short-term U.S. Treasury securities.
Hines previously served as Executive Director of the White House Crypto Council and played a role in advancing the GENIUS Act before stepping down shortly after it became law.
He emphasized that both USDT and USAT are part of a broader, unified strategy. While USAT aligns specifically with U.S. regulatory standards, Hines noted there will be interoperability between the two tokens.
“It’s just Tether at the end of the day,” he said, adding that the company is increasing its Treasury holdings as it moves toward full compliance under the new framework.
Beyond Treasurys: Gold Holdings Add Diversification
In addition to U.S. government debt, Tether holds significant gold reserves. Hines stated the company owns roughly 140 tons of gold, positioning it among the world’s largest holders. This diversification adds another layer to Tether’s balance sheet strategy as it seeks to maintain stability and investor confidence.
A Growing Force in Global Debt Markets
If Tether reaches its goal of becoming a top 10 purchaser of U.S. Treasury bills, it would mark a notable shift in the global debt market, with a private digital asset company ranking alongside major economies as a key holder of U.S. government securities.
For now, Tether’s trajectory reflects two parallel trends: rapid adoption of stablecoins worldwide and increasing integration of digital assets into traditional financial systems. As demand for dollar-pegged tokens continues to rise, so too does Tether’s footprint in one of the world’s most important financial markets.
