Stablecoin Giant Tether Now Holds More US Treasuries Than South Korea and UAE

Tether’s US Treasury holdings have soared to $135 billion, propelling the stablecoin chief previous South Korea to grow to be the seventeenth largest holder of American debt globally.

At the identical time, Tether Gold’s market cap surpassed $2 billion, cementing the corporate’s dominance in tokenized real-world property.

Tether’s Treasury Holdings Surpass Sovereign States

With $135 billion in US Treasuries, Tether now stands above South Korea and simply behind Brazil in world rankings. CEO Paolo Ardoino emphasised Tether’s development in a X (Twitter) submit.

This marks fast progress 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 whole Treasury publicity exceeded $127 billion. It consisted of $105.5 billion in direct holdings and $21.3 billion in oblique publicity.

This accumulation matches Tether’s strategic response to the rising US stablecoin surroundings. The GENIUS Act grew to become regulation in July 2025 and launched complete digital asset guidelines. These require most stablecoin reserves to be held in low-risk property like Treasuries.

The Act has accelerated adoption amongst banks and Fortune 500 companies. It has pushed stablecoin market cap forecasts from $270 billion in 2025 to an estimated $2 trillion by 2028.

Tether’s portfolio now rivals holdings of main economies corresponding to Germany and Saudi Arabia. As China’s publicity to US debt dropped from greater than $1 trillion to $756 billion, stablecoin issuers have grow to be more and more vital buyers of US government debt. This pattern might assist uphold the greenback’s dominance and may have an effect on rates of interest.

Alongside Circle, stablecoin corporations now own more US debt than several countries, exhibiting their rising affect in world 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₮) just lately crossed the $2 billion market cap mark, pushed by all-time high gold costs 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 superb troy ounces of gold in Switzerland below London Good Delivery requirements. This marks a notable leap from $1.44 billion at Q3 2025’s shut.

Every XAU₮ token is pegged 1:1 to at least one superb troy ounce of gold, with reserves transparently verified on-chain. As gold rallied to $3,858.96 per ounce on September 30, 2025, investor issues over inflation and geopolitical danger bolstered demand for tokenized gold. Tether noted that the expansion mirrors rising curiosity in blockchain-based hedges.

Tether Gold’s momentum matches the broader rise in tokenized real-world asset adoption. Asset managers and sovereigns more and more use blockchain for safe asset issuance and custody. By Q2 2025, Tether held over 7.66 metric tons of gold, supporting robust token circulation and reserves.

Ardoino referred to as XAU₮ a proof of idea for digital asset possession and regulatory compliance. The token affords institutional safety and decentralized entry, making it an important part of the rising digital economic system.

Digital Finance and Market Implications

Tether’s enlargement in each Treasury holdings and tokenized gold cements its key place, bridging traditional finance and blockchain. The stablecoin sector has grown quick.

Moreover, the transaction volumes now challenge Visa, and almost half of all establishments use stablecoins for funds and buying and selling.

Supporters say rising stablecoin demand for Treasuries strengthens the US greenback globally and might assist decrease charges.

Yet, critics cite potential dangers to market liquidity and competitors with banks, which issues monetary trade teams.

Tether’s giant holdings give it energy in Treasury markets, traditionally the taking part in discipline of sovereign states solely. As stablecoin market caps are projected to succeed in $2 trillion by 2028, the trade’s impression on debt, liquidity, and monetary stability is prone to improve.

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