Tether Expands US Treasury Holdings by $3 Billion Despite Profit Decline

Tether significantly increased its exposure to US Treasuries, adding over $3 billion in holdings between quarters even as quarterly profits fell sharply year-over-year. The stablecoin issuer’s combined Treasury bill, reverse repo, and money market fund allocations reached $120 billion by March 31—up from $116.7 billion at 2024’s close.

The composition reveals a strategic pivot toward low-risk government instruments: $98.5 billion in direct T-bills anchors the reserves, supplemented by $15.1 billion in overnight reverse repos and $6.3 billion in money market funds. Nearly 80% of the latter category represents indirect Treasury exposure.

This conservative reallocation underscores Tether’s priority of fortifying USDT’s reserve backing amid market volatility. The shift comes at a cost to profitability, though the company maintains dominance in stablecoin circulation with its dollar-pegged token.