Tether, the issuer of USDT, has emerged as one of the biggest buyers of U.S. Treasury securities, surpassing major economies like Germany, Canada, and Mexico. The company’s expanding influence in global finance highlights the growing role of stablecoins in traditional markets.
According to Tether CEO Paolo Ardoino, the firm purchased a net $33.1 billion in U.S. Treasuries last year. This investment strengthens Tether’s financial position and raises questions about how stablecoin issuers might impact U.S. debt markets. Ardoino also pointed out that USDT adoption has now surpassed 400 million users, primarily in developing economies.
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USDT’s Market Dominance and Regulatory Challenges
USDT remains the top stablecoin, holding 62.45% of the $230 billion stablecoin market, with a market capitalization of $143 billion. This is nearly three times that of Circle’s USD Coin (USDC), which stands at $59 billion, according to DeFiLlama data.
Despite its dominance, Tether could face regulatory headwinds in the U.S. A proposed stablecoin bill may restrict offshore issuers like Tether from accessing U.S. Treasury markets, potentially benefiting U.S.-based competitors like USDC. However, Ardoino remains optimistic, arguing that Tether’s investments help strengthen and diversify U.S. debt markets.
At a recent Bitcoin Policy Institute event, Ardoino stated, “We’ve done more for financial inclusion than anyone else. And while doing that, we’re buying back U.S. debt. If we were a country, we’d be the 18th largest holder of U.S. Treasuries.”
Stablecoin Policies and Political Support
U.S. President Donald Trump and Treasury Secretary Scott Bessent have voiced support for stablecoin-friendly policies. Trump, in a virtual speech at Blockworks’ Digital Asset Summit on March 20, urged Congress to establish clear regulations to promote institutional adoption of stablecoins.
With stablecoins playing an increasing role in global finance, regulatory clarity could determine whether Tether maintains its dominance or faces restrictions in the U.S. financial system.
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