Tether, the issuer of the world’s largest stablecoin USDT, now holds more US Treasury securities than Germany, one of the world’s largest economies. According to recent financial disclosures, Tether’s total exposure to US Treasuries in Q1 2025 has surged to $91 billion, making it the 16th largest holder of US debt globally.

The move signals a major shift in how the stablecoin issuer manages its reserves, reinforcing its claim of being fully backed by highly liquid and low-risk assets. This rise places Tether just ahead of Germany, which holds roughly $89 billion in US Treasuries, according to the latest data from the US Department of the Treasury.

Tether’s strategic investment in government securities serves two purposes: ensuring liquidity for redemptions and demonstrating financial stability amid ongoing scrutiny of stablecoin reserves. This allocation aligns with the company’s efforts to increase transparency following regulatory concerns over its asset backing in previous years.

Paolo Ardoino, Tether’s CEO, noted that the decision reflects the company’s “commitment to conservative risk management and global financial resilience.” He emphasized that the growth of USDT adoption has required a stronger, more transparent reserve strategy—one that inspires long-term trust.

The report further underscores the increasing overlap between traditional finance…