Tether holds $114.96 billion in US Treasury bills as Washington weighs an overseas stablecoin push
Tether's Treasury holdings sit at the center of a Washington debate
Tether, the company that issues the USDT stablecoin, listed $114.96 billion in directly held US Treasury bills in its latest reserve report. A stablecoin is a crypto token designed to hold a steady value, usually one US dollar.
That figure was the starting point for a CryptoSlate analysis published on Sept. 26. The analysis argues that Tether has turned global demand for digital dollars into demand for US government debt, making it a large private buyer of short-term American debt.
The same article points to a Bloomberg report from Sept. 23. According to that report, the Trump administration was considering an overseas stablecoin initiative that could include joint ventures with private companies. Treasury and the State Department could take part, and so could the US International Development Finance Corporation. The stated goal is to extend dollar use and support demand for Treasuries.
Key numbers from Tether's reserve report
- Directly held US Treasury bills: $114.96 billion, with a weighted average maturity below 90 days.
- Total reserve assets: $187.75 billion. Total liabilities: $183.64 billion, as of June 30. That left $4.11 billion above liabilities.
- Overnight reverse repo agreements: $18.63 billion. These are transactions in which Tether lends cash against collateral.
- Other reserve assets: $18.84 billion in precious metals, $5.80 billion in Bitcoin and $13.45 billion in secured loans.
- Tether reported about $1.50 billion in second-quarter net operating profit, led by Treasury and repo income.
- Tether says USDT represented more than 60% of the stablecoin market at the end of June.
What the CFTC order and the 2025 audit say
In October 2021, the Commodity Futures Trading Commission ordered Tether to pay $41 million over misleading representations about its backing. The order covered claims made between 2016 and 2019 that USDT was fully backed by corresponding fiat currency held in bank accounts. The regulator found that Tether had held other assets and relied on arrangements that did not match those claims.
In October 2022, Tether announced it had eliminated commercial paper, the short-term debt that companies issue, and replaced those investments with US Treasury bills.
On Aug. 13, Tether announced that KPMG US had completed an audit of its 2025 financial statements and issued an unqualified opinion. That means the auditor accepted that the statements fairly presented Tether's finances under the accounting standards used.
What the Bloomberg report says about the stablecoin plan abroad
Bloomberg reported on Sept. 23 that the Trump administration was weighing an overseas stablecoin initiative, including possible joint ventures with private companies. The report said Treasury, the State Department and the US International Development Finance Corporation could participate, with the aim of extending dollar use and supporting demand for Treasuries.
What is confirmed
- Tether's reserve report lists the asset and liability figures above as of June 30.
- The CFTC ordered Tether to pay $41 million in October 2021 over misleading representations about its backing.
- Tether announced in October 2022 that it had eliminated commercial paper, and on Aug. 13 that KPMG US had completed an audit of its 2025 financial statements.
- Bloomberg reported that an overseas stablecoin initiative is under consideration.
What is still unclear
The report does not establish a deal with Tether, and the initiative has not been announced as an operating program. The source material does not say whether it will proceed, which private companies would take part, or what role Tether might play. No terms or timeline are given.
The reserve figures cover one date, June 30, and the source provides no newer figures. It also warns against presenting the whole reserve as a 1:1 portfolio of Treasury bills, because the reserves include other assets. Neither Tether's reserve report nor the audit makes USDT a government obligation.
Why the relationship matters
The analysis argues that Treasury bills provide Tether with income and make it easier for US policymakers to treat the company as an established financial counterparty. At the same time, Tether's distribution network reaches people who may find it easier to buy a token than to open a US bank account.
In that arrangement, the analysis says, Washington gets a debt buyer without operating a retail service, Tether earns income from assets that also support confidence in its token, and users get a dollar-denominated balance that can move through markets they can reach. The analysis also notes that USDT holders do not get a contractual share of the returns earned on Tether's reserves, so the users have less say in the terms than the other two sides.
Where the Treasury buying argument has limits
Buying Treasury bills does not retire the national debt, and short-dated bills do not commit Tether to financing the US government for decades, according to the analysis. The portfolio has to serve users who may want their money back, so Tether's purchases depend on the condition of its own business. The analysis adds that the company's real value to Washington goes beyond the size of today's portfolio, because it gathers dollar demand from people who might never become customers of large financial institutions.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.