Tether Treasury bond investment is gaining momentum, and by 2026, it is expected to rank among the top ten buyers of U.S. debt

Tether’s U.S. department head Bo Hines recently made an important prediction at the New York Bitcoin Investor Week conference: the company is expected to become one of the top ten buyers of U.S. Treasury securities by 2026. This forecast reflects the rapid growth in demand within the stablecoin market and highlights Tether’s ongoing efforts to build a secure, transparent reserve system. As the issuer of the world’s largest stablecoin USDT, Tether is supporting its massive user base by large-scale holdings of short-term government bonds.

$122 billion in Treasury holdings, leading transparency in reserve structure

Tether’s current reserve assets are impressive. According to the latest official audit statement, the company holds over $122 billion in U.S. Treasury securities, accounting for 83.11% of its total reserves. These Treasuries, as highly liquid and low-risk assets, form the core backing of USDT’s value.

Bo Hines clearly stated at the conference that as demand for USDT and the newly launched USAT stablecoins accelerates, Tether will further expand its Treasury holdings. He said, “This year, we will ultimately become one of the top ten buyers of U.S. Treasury securities.” This commitment is directly linked to the growth in circulation of both stablecoins.

In addition to Treasuries, Tether’s reserve structure is diversified. According to the latest data from accounting firm BDO, the company holds about $6.3 billion in excess reserves, providing more than the minimum required backing for circulating tokens. Furthermore, Tether also holds about 140 tons of gold, which Hines described as the thirteenth-largest gold holder globally. This multi-layered asset allocation ensures that even during market volatility, each token has sufficient value support.

Internationally, Tether has become one of the top twenty holders of U.S. Treasuries worldwide, rivaling many sovereign nations. According to the U.S. Treasury Department’s foreign holder rankings, Tether’s Treasury holdings are between Germany and Saudi Arabia. This achievement demonstrates the growing influence of a crypto company within traditional financial markets.

530 million users worldwide drive USDT demand, with 30 million new users per quarter fueling Treasury acquisitions

User growth is the direct driver behind Tether’s expanding Treasury holdings. Since its launch in 2014, USDT has accumulated approximately 530 million users globally, and this number continues to grow. Hines emphasized at the conference, “We are adding about 30 million users each quarter, which is quite remarkable.”

This stable and rapid user growth directly translates into increased issuance. Currently, the total circulating USDT is about $185 billion, firmly establishing it as the largest stablecoin by market cap. Every new user or existing user increasing their USDT holdings requires Tether to correspondingly increase its reserve assets. This mathematical relationship underpins Tether’s ongoing expansion of Treasury investments.

The core promise of stablecoins is to maintain a fixed value (usually $1). To fulfill this promise, issuers must hold reliable and easily tradable reserves. Treasuries, with their safety and liquidity, are the ideal choice. As USDT’s circulation grows, Tether’s holdings of government bonds will inevitably increase. If quarterly growth continues at the current pace, Tether’s Treasury investment scale will further rise, potentially breaking into the top ten buyers.

New provisions under the GENIUS Act accelerate USAT’s Treasury holdings

Tether’s demand for Treasuries will also be further accelerated by the upcoming launch of the new product USAT at the end of 2025. USAT is issued by Anchorage Bank and designed to meet the standards of the U.S. federal stablecoin regulatory framework under the GENIUS Act.

The GENIUS Act sets strict asset requirements for regulated stablecoins: each token must be fully backed 1:1 by high-quality assets such as short-term Treasuries. This means that every USAT issued directly corresponds to a Treasury purchase demand.

Notably, Bo Hines served as the executive director of the White House Cryptocurrency Council during President Trump’s term, witnessing the passage of the GENIUS Act through Congress firsthand. After the bill was approved, he resigned in August 2025 to join Tether, focusing on advancing the company’s compliance efforts. Hines stated that Tether is continuously adjusting its reserve structure to meet the strict standards of the GENIUS Act. “As we move toward GENIUS compliance, we are gradually increasing the amount of Treasuries in our reserves,” he added.

More importantly, Tether ensures interoperability between USDT and USAT. Although these stablecoins differ in regulatory framework, they fundamentally represent Tether’s commitment and reputation. This integrated product strategy meets diverse market compliance needs and provides Tether with a broader user base and liquidity sources.

New landscape in the stablecoin market

Tether’s large-scale investment in Treasuries reflects a deep transformation of the stablecoin industry from the periphery to the mainstream. No longer just a trading tool, stablecoins are becoming a bridge connecting crypto assets with traditional finance. Tether’s reserve strategy—supporting USDT and USAT through U.S. Treasury purchases—directly links digital dollars to the U.S. government debt market, creating a new financial ecosystem.

As user numbers grow and regulatory standards tighten, Tether’s continued expansion of Treasury holdings is inevitable. In the near future, this crypto company may indeed become one of the largest buyers of U.S. government debt, marking an important milestone in the integration of crypto finance into traditional financial systems.