Tether Dramatically Reduces Treasury Purchases Amid Strategic Reserve Shift

Tether's US Treasury bond acquisitions plummeted 89% quarter-over-quarter, dropping from $65 billion in Q1 to just $7 billion in Q2 2025. The stablecoin issuer now maintains $105.5 billion in direct Treasury holdings alongside $24.4 billion in indirect exposure through repurchase agreements and non-US government bonds.

The Bermuda-based company's latest attestation reveals $5.47 billion in excess reserves backing its 157.1 billion USDT tokens in circulation. This abrupt slowdown follows two consecutive quarters of aggressive accumulation, including $33 billion in Q4 2024 and $65 billion in Q1 2025 purchases.

CEO Paolo Ardoino disclosed the figures while emphasizing the company's fully-backed reserve status. The strategic pivot coincides with decreased non-US Treasury holdings, which fell approximately $17 billion during the quarter.