Tether’s U.S. Treasury Holdings Top $120 Billion

CryptoNow

Gold holdings also surge to 130 tonnes

Diversification of reserve assets becomes more evident

Tether, a stablecoin pegged 1-to-1 to the U.S. dollar, has seen its holdings of U.S. Treasuries surpass $120 billion (about 174 trillion won). With gold holdings also rising rapidly, observers say diversification of its reserve assets is becoming increasingly evident.

According to the industry on the 1st, Tether’s direct investment in U.S. Treasuries totaled about $122 billion as of the end of last year, marking an all-time high. Including indirect exposure such as repurchase agreements (RP), its total exposure to U.S. Treasuries exceeds $140 billion (about 203 trillion won). U.S. crypto news outlet CoinDesk said, “Tether has established itself as one of the world’s largest corporate holders of U.S. Treasuries.”

The expansion in Treasury holdings coincides with growth in stablecoin issuance. Stablecoin issuers including Tether are adding U.S. Treasuries, gold and Bitcoin to their reserve assets. Tether’s circulating supply stood at $186 billion as of end-2024, up about $50 billion over the past year. In particular, $30 billion worth of Tether was newly issued in the second half of last year alone.

Gold holdings are also rising quickly. The value of Tether’s gold holdings reached $17.4 billion as of end-2024, setting a new record. Tether is buying roughly 1–2 tonnes of gold each week and purchased 27 tonnes in the fourth quarter alone. Tether’s current gold holdings are estimated at about 130 tonnes, reported to be more than 25 tonnes above the Bank of Korea’s holdings (about 104 tonnes).

Paolo Ardoino, Tether’s chief executive officer (CEO), recently said, “The amount of capital we deploy each month to buy gold could soon exceed $1 billion.”

Investment beyond reserves is also expanding rapidly. Tether is using excess profits to invest across a range of sectors including agriculture, energy, media and artificial intelligence (AI). Such investments have surpassed $20 billion. Ardoino said, “Tether’s growth is driven by global demand for dollars moving outside the traditional banking system,” adding that “demand for digital dollars and inflation hedges will continue to accelerate.”