Tether Surpasses South Korea to Become a Top U.S. Treasury Bond Holder—Crypto Flexes Its Financial Muscle

Tether—the stablecoin giant—just outranked South Korea in U.S. treasury holdings. Who needs sovereign nations when you’ve got a crypto-backed cash pile?

The New Heavyweight in Treasury Bonds

Move over, traditional finance. Tether’s reserves now rival entire economies, proving crypto isn’t just disrupting—it’s dominating.

Stablecoins: The Quiet Power Players

While regulators fret over volatility, Tether’s treasury stash screams stability. Irony? Or just Wall Street’s worst nightmare?

Cynical Finance Jab
: Guess the ‘unbacked’ crypto narrative just got another hole punched in it—right next to the Fed’s inflation forecasts.

Tether’s reserves surpass liabilities in Q2

Aside from the milestone in U.S. treasury bonds held, the report also confirms that Tether’s reserves exceed its liabilities, with total assets at approximately $162.6 billion versus $157.1 billion in liabilities.

The company holds $5.47 billion in shareholder capital as a protective equity buffer, reinforcing its financial strength and solvency. More importantly, the $127 billion in U.S. Treasuries serves as the main backing for USD₮, ensuring high liquidity and low risk for token holders.

In the second quarter of 2025, USDT’s issuer generated a net profit of around $4.9 billion, driven by income from its U.S. Treasury holdings and strategic reserves in Bitcoin (BTC) and gold. Out of the $5.7 billion in total year-to-date profits, $3.1 billion came from stable recurring revenue, with the remaining $2.6 billion from mark-to-market gains.

This financial performance enables the firm to continually reinvest, with $4 billion already deployed in U.S. strategic initiatives, including projects like XXI Capital and Rumble Wallet.