Tether Set to Crack Top 10 US Treasury Bill Purchasers, Says Bo Hines
Stablecoin giant Tether is on track to become one of the single biggest buyers of US government debt.
The Scale of the Bet
Forget your average institutional investor. According to North Carolina congressional candidate Bo Hines, Tether's relentless accumulation of US Treasury bills is pushing it into a league typically reserved for sovereign nations and the world's largest asset managers. The numbers don't lie—its purchasing power now rivals that of major financial powers.
What This Means for Crypto and Traditional Finance
This isn't just a crypto story; it's a seismic shift in capital markets. A digital asset company becoming a top-tier creditor to the US government blurs the line between the legacy financial system and the decentralized future. It grants the crypto ecosystem unprecedented influence over the bedrock of global finance—the US dollar's debt instrument. Some on Wall Street are watching with a mix of awe and deep-seated anxiety, likely muttering about the irony of 'internet money' propping up the very system it was designed to bypass.
The move underscores a brutal truth in modern finance: liquidity is the ultimate kingmaker, and right now, Tether is printing its own crown. Whether this is a masterstroke of financial integration or a precarious concentration of power depends on which side of the trading desk you sit.
USDT growth and USAT launch drive higher reserve requirements
Tether’s flagship stablecoin, USDT, is currently the largest in the world by market value. There are approximately $185 billion worth of USDT tokens in circulation. Consequently, Tether needs massive reserves to support its value.
Now, USDT boasts roughly 530 million users worldwide. The stablecoin issuer is adding around 30 million new users per quarter, indicating solid, consistent growth, he said. This rapid growth is one of the reasons the firm must further increase its Treasury bill holdings.
Real assets must back every token issued. Tether’s reserve strength is not limited to Treasury bills. The company also has roughly $6.3 billion in excess reserves, according to accounting firm BDO.
Moreover, Tether has a large gold reserve. The company owns roughly 140 tons of gold, Hines said, making it the thirteenth-largest gold holder in the world. Gold usually serves as a long-term store of value, providing Tether with an additional source of financial stability.
New USAT stablecoin and regulation push more Treasury investments
Tether’s Treasury bill purchases could increase even faster because of its newly launched USAT stablecoin. USAT was officially introduced late last month and is issued by Anchorage Bank.
Unlike USDT, USAT was designed specifically to meet U.S. federal stablecoin regulations under the GENIUS Act. This law requires regulated stablecoins to maintain full 1:1 backing with high-quality liquid assets.
Hines played an important role in shaping this law during his time as Executive Director of the White House Crypto Council under President Donald Trump. He stepped down from that role in August shortly after the GENIUS Act was signed into law.
Hines, who’s now at Tether, said the company is adjusting its reserves to meet these new regulatory standards. He explained that Tether is increasing its Treasury bill holdings as part of its efforts to comply with the GENIUS framework.
He also said that USDT and USAT are built to work well together, describing this as “reciprocity,” meaning the two stablecoins can operate smoothly with each other while remaining part of the same Tether system.
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