Tether ranked as the seventh-largest purchaser of U.S. Treasury securities in 2024, marking a significant milestone for the USDT stablecoin issuer.
Growth of Investments in U.S. Treasury Bonds
Tether's CEO Paolo Ardoino announced that the company purchased $33.1 billion in U.S. Treasuries last year, ahead of countries like Germany and Canada. Ardoino also noted the rapid expansion of Tether's global presence, with USDT adoption surpassing 400 million users, primarily in developing countries.
Tether's Records and Challenges in the U.S. Market
As of March 21, 2024, USDT leads the stablecoin market with a 62.45% share of the $230 billion total supply. USDT's market cap reached $143 billion, nearly three times that of its competitor USD Coin (USDC), which stands at $59 billion. Despite regulatory setbacks in Europe, the company reported a record net profit of $13 billion and issued 45 billion USDT in 2024.
The Future of Stablecoin Regulation
Tether might face challenges in the U.S. A proposed bill could restrict offshore issuers' access to the U.S. Treasury market, potentially benefiting local competitors like USDC. At an event hosted by the Bitcoin Policy Institute, Ardoino emphasized Tether's investments' role in strengthening and diversifying U.S. debt markets.
The future of Tether in the U.S. Treasury market may hinge on legislative changes. Meanwhile, the company continues to demonstrate its financial strength and global influence in the stablecoin market.
