Emre Yumlu 
Tether, the world’s largest stablecoin issuer, has outpaced Germany in US Treasury bond investments during the first quarter of 2025. The company’s diversified reserve strategy has played a key role in mitigating the market turbulence experienced in the crypto space.
A Massive $120 Billion Investment from Tether
According to Tether’s Q1 2025 attestation report, the company’s holdings in US Treasury bills have surpassed $120 billion. This amount is higher than Germany’s $111.4 billion in US Treasurys. With this milestone, Tether has become the 19th largest holder of US government debt globally.
In the report, Tether stated:
“This achievement not only strengthens our prudent reserve management approach but also highlights our expanding role in distributing dollar liquidity at scale.”
Gold and Treasuries Help Cushion Crypto Market Volatility
As crypto markets faced significant fluctuations in early 2025, Tether’s traditional asset portfolio helped offset much of the volatility. The company reported over $1 billion in operating profits for the first quarter, largely driven by returns on US Treasuries, while gold holdings also contributed significantly, softening the impact of crypto losses.
Uncertainty Around Regulations May Influence Future Inflows
While demand for Tether’s dollar-backed stablecoin continues to grow, regulatory uncertainty in the United States remains a factor. Clearer guidelines are expected to boost institutional confidence and potentially lead to further expansion of Treasury reserves.
Two major legislative efforts are currently in focus:
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The STABLE Act, which passed the House Financial Services Committee in April, is now awaiting a full House vote.
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The GENIUS Act was stalled on May 8 due to lack of support, with some concerns raised over former President Donald Trump’s potential financial interests through his family’s involvement in digital assets.
Strong Industry Presence in Washington
On May 14, more than 60 prominent crypto founders gathered in Washington, D.C., to express support for the GENIUS Act. The bill aims to establish clear collateral standards for stablecoin issuers and enforce compliance with Anti-Money Laundering (AML) laws.
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