Tether Now Holds $72.5B in US Treasury Bonds, Surpassing UAE, Mexico, Australia, and Spain

Tether is now the 22nd largest holder of US T-Bills, surpassing UAE, Mexico, Australia, and Spain.

Tether, the issuer of the world’s largest stablecoin USDT, currently holds $72.5 billion in US Treasury Bills (T-Bills), according to a statement from the company’s CTO Paolo Ardoino. This makes Tether the 22nd largest holder of T-bills globally, surpassing the United Arab Emirates, Mexico, Australia, and Spain.

Tether Continues to Increase Its T-Bills Holdings

The holdings mark a significant increase from the $53 billion Tether held as of March 2023.  

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The latest development underscores Tether’s efforts to continue backing the USDT with the most secure reserves while increasing transparency around the stablecoin. In its 2023 second-quarter report, Tether revealed an $850 million increase in excess reserves to reach $3.3 billion.

In its Q2 report, Tether revealed consolidated total assets of $86.4 billion against consolidated total liabilities of $83.17 billion. At the same time, the leading stablecoin issuer’s operational profits exceeded $1 billion, marking a significant increase of 30% from the previous quarter.

USDT is the world’s largest stablecoin and the third-largest cryptocurrency, with a market cap of $82.8 billion, according to CoinGecko. As stated by Ardoino, USDT is the most used stablecoin globally, with a major focus on emerging markets.

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… https://t.co/7hC12Nhzdq

— Paolo Ardoino ? (@paoloardoino) September 5, 2023

USDT Market Cap Faces Decline 

Meanwhile, the latest report comes as USDT’s market cap is declining amid a growing shift in the stablecoin ecosystem. According to a Bloomberg report that cited researcher CCData, the market cap of USDT dropped 1.2% to $82.9 billion in August.

While the decline marked USDT’s market cap first in almost a year, the stablecoin still maintained a significant lead over its closest rival, USDC, which shed nearly half its market cap. Per the report, the overall size of the stablecoin market has also declined for the 17th consecutive month, dropping by 0.4% to around $125 billion.