Tether has become a significant buyer of US government debt as USDT’s growth expands the reserves required to back each token. The company holds more than $122 billion in Treasury bills directly and has total exposure exceeding $141 billion when indirect positions are included, surpassing several sovereign nations. Roughly 83% of its reserves are invested in Treasury bills, while USDT’s market capitalization has reached approximately $185 billion. Tether made net Treasury purchases of $33.1 billion in 2024 and $28.2 billion in 2025, ranking seventh among foreign buyers in both years. Excluding hedge funds, Tether describes itself as the fifth-largest purchaser of US Treasuries. Its CEO expects the company to enter the top 10 T-bill buyers in 2026 as user growth and new products expand demand. Tether says it adds about 30 million users per quarter and has around 530 million users, helping drive more than $10 billion in 2025 profits, almost entirely from Treasury yields. US Treasury Secretary Scott Bessent has said stablecoin issuers could eventually absorb $800 billion to $1 trillion of Treasuries. Proposed stablecoin legislation could reinforce that demand through reserve requirements, although a rapid USDT redemption event could force Tether to sell tens of billions of dollars in highly liquid T-bills and still disrupt short-term funding markets. Circle, the issuer of USDC, also holds substantial Treasury reserves but at a smaller scale.