Tether Holds $141 B in U.S. Treasuries, Adding Stablecoin Risk to Government Debt

Tether, the issuer of the USDT stablecoin, closed 2025 with more than $141 billion in direct and indirect exposure to U.S. Treasury securities, making it the 17th‑largest overall holder and the largest non‑sovereign owner of U.S. debt. The firm’s $149.3 billion reserve pool is 81.5 % cash and short‑term assets, including about $98.5 billion in Treasury bills and $15.1 billion in overnight repo agreements.

The exposure follows the passage of the GENIUS Act, signed into law on July 18 2025, which requires stablecoin issuers to maintain 100 % reserve backing with liquid assets such as short‑term Treasuries and to disclose reserve composition monthly. Treasury Secretary Scott Bessent called the provision a “debt relief engine,” arguing that stablecoin reserves parked in Treasuries could boost demand for the securities and ease government financing pressures.

Analysts warn that the growing size of the stablecoin market – projected to reach $1.9 trillion by 2030 – could embed a new source of systemic risk into the sovereign debt market. The IMF noted that Tether and rival Circle together hold more U.S. Treasuries than Saudi Arabia, highlighting the unprecedented role of a private company registered in El Salvador in funding U.S. government debt. The pending CLARITY Act would further institutionalize these reserve requirements across the stablecoin sector.