Tether, the company behind the world’s largest stablecoin USDT, is quickly becoming one of the biggest private lenders to the United States. In its Q1 2025 report, the company posted impressive figures, showing not only strong profits but also the growing size of its reserves.
As of April, the total value of Tether’s issued tokens, mainly USDT, reached $143.7 billion—an increase of $7 billion since the beginning of the year. These tokens are backed by reserves worth around $149.3 billion, giving Tether an extra cushion of $5.6 billion in surplus reserves.
What really stands out is the fact that Tether now holds more than $120 billion in U.S. government bonds. That makes it one of the largest private holders of U.S. Treasuries. If Tether were considered a country, it would rank 19th among sovereign holders—right between South Korea and Mexico. In 2024, Tether was even the seventh-largest buyer of U.S. Treasury securities.
Roughly $4.7 trillion of the total $8.5 trillion in U.S. debt is held privately, and Tether is now firmly part of that circle. While giants like BlackRock (with over $1 trillion in Treasuries) and Warren Buffett’s Berkshire Hathaway (around $300 billion) are still ahead, Tether is making its mark—and with it, possibly gaining influence in Washington.
Tether’s reserves are solid. Around 80% are held in government bonds and other currencies, with the rest split between gold, Bitcoin, secured loans, and various smaller investments. This diversified portfolio resembles that of national central banks, such as those of the Czech Republic or Poland.
Ironically, despite its strong reserve structure, Tether doesn’t meet the EU’s legal requirements for stablecoins. Because of this, USDT is not allowed for trading in the European Union—unlike some weaker-backed competitors. It’s a clear example of how regulatory intentions and outcomes can contradict each other. If a central bank like Switzerland’s backed a similar coin, the EU would still reject it under current rules.
Meanwhile, Tether is trying to branch out. With its massive profits, the company is investing in startups and new sectors such as artificial intelligence, energy, peer-to-peer tech, and data processing. So far, success has been limited. One example is the Keet messenger app, similar to Signal, which has barely gained traction. Another project, Hadron—meant to help issue “real world assets” on the blockchain—has also struggled to stand out despite booming interest in this sector.
Still, Tether remains in the news almost daily. Some recent developments include:
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May 8: Donated $100,000 to the BTCPay Server Foundation
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May 7: Launched USDT natively on the Kaia Blockchain from LINE
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May 6: Hadron partnered with Chainalysis for compliance
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April 30: Bought 70% of South American energy company Adecoagro and replaced its management
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April 28: Its gold-backed token XAUT reached a market cap of $770 million
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April 24: Bought a 10% stake in Juventus football club
While USDT continues to dominate the stablecoin market and generate huge profits, Tether’s other ventures—such as the gold-backed XAUT, the euro stablecoin EURT, and side projects like Keet—remain secondary. They add color to Tether’s empire but haven’t yet built strong foundations of their own.
In short, Tether knows how to earn money—but figuring out how to spend it effectively is proving to be a greater challenge.