Tether’s US Treasury holdings have soared to $135 billion, propelling the stablecoin leader past South Korea to become the 17th largest holder of American debt globally.
At the same time, Tether Gold’s market cap surpassed $2 billion, cementing the company’s dominance in tokenized real-world assets.
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Tether’s Treasury Holdings Surpass Sovereign States
With $135 billion in US Treasuries, Tether now stands above South Korea and just behind Brazil in global rankings. CEO Paolo Ardoino emphasized Tether’s advancement in a X (Twitter) post.
Tether ranks 17th among US Treasury holders with $135 billion, surpassing South Korea. Source: Paolo Ardoino on XThis marks rapid growth since Q1 2025, when Tether purchased $65 billion in Treasury bonds. This raised its direct holdings to $98.5 billion by March 31.
By Q2 2025, Tether’s total Treasury exposure exceeded $127 billion. It consisted of $105.5 billion in direct holdings and $21.3 billion in indirect exposure.
This accumulation matches Tether’s strategic response to the growing US stablecoin environment. The GENIUS Act became law in July 2025 and introduced comprehensive digital asset rules. These require most stablecoin reserves to be held in low-risk assets like Treasuries.
The Act has accelerated adoption among banks and Fortune 500 firms. It has pushed stablecoin market cap forecasts from $270 billion in 2025 to an estimated $2 trillion by 2028.
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Tether’s portfolio now rivals holdings of major economies such as Germany and Saudi Arabia. As China’s exposure to US debt dropped from more than $1 trillion to $756 billion, stablecoin issuers have become increasingly vital buyers of US government debt. This trend may help uphold the dollar’s dominance and could affect interest rates.
Alongside Circle, stablecoin companies now own more US debt than several countries, showing their growing influence in global liquidity. The USDC stablecoin issuer holds $45 billion to $55 billion.
Tether Gold Climbs Past $2 Billion and Fuels RWA Momentum
Meanwhile, Tether Gold (XAU₮) recently crossed the $2 billion market cap mark, driven by all-time high gold prices and demand for tokenized real-world assets.
By late October 2025, XAU₮’s market cap reached about $2.1 billion, backed by 375,572.297 fine troy ounces of gold in Switzerland under London Good Delivery standards. This marks a notable jump from $1.44 billion at Q3 2025’s close.
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Tether Gold Price Performance. Source: CoinGeckoEvery XAU₮ token is pegged 1:1 to one fine troy ounce of gold, with reserves transparently verified on-chain. As gold rallied to $3,858.96 per ounce on September 30, 2025, investor concerns over inflation and geopolitical risk bolstered demand for tokenized gold. Tether noted that the growth mirrors rising interest in blockchain-based hedges.
Tether Gold’s momentum matches the broader rise in tokenized real-world asset adoption. Asset managers and sovereigns increasingly use blockchain for secure asset issuance and custody. By Q2 2025, Tether held over 7.66 metric tons of gold, supporting strong token circulation and reserves.
Ardoino called XAU₮ a proof of concept for digital asset ownership and regulatory compliance. The token offers institutional security and decentralized access, making it a crucial component of the growing digital economy.
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Digital Finance and Market Implications
Tether’s expansion in both Treasury holdings and tokenized gold cements its key position, bridging traditional finance and blockchain. The stablecoin sector has grown fast.
Moreover, the transaction volumes now challenge Visa, and nearly half of all institutions use stablecoins for payments and trading.
Supporters say growing stablecoin demand for Treasuries strengthens the US dollar globally and may help lower rates.
Yet, critics cite potential risks to market liquidity and competition with banks, which concerns financial industry groups.
Tether’s large holdings give it power in Treasury markets, historically the playing field of sovereign states only. As stablecoin market caps are projected to reach $2 trillion by 2028, the industry’s impact on debt, liquidity, and financial stability is likely to increase.
Source: https://beincrypto.com/tether-us-debt-holdings-2025/
