Blockchain specialized media Cointelegraph reported on the 19th (local time) that Tether is holding approximately $120 billion in US Treasury bonds, which is higher than the amount held by major countries such as Canada, Taiwan, and Hong Kong. Tether's asset management strategy symbolically demonstrates how the cryptocurrency industry is increasingly interconnected with traditional financial markets.
Tether is actively utilizing traditional assets, including US Treasury bonds, as reserves to enhance the credibility of its stablecoin 'USDT'. US Treasury bonds are evaluated as assets preferred by global investors due to their high safety and liquidity.
This strategy has been effective even during market downturns. Tether recorded over $1 billion in operating profit in the first quarter of 2025, despite the cryptocurrency market's weakness. Treasury bond returns and gold investment returns are also analyzed to have contributed to absorbing market volatility.
Meanwhile, discussions on stablecoin regulation bills continue in the US Congress. The House of Representatives is showing movements to increase transparency and accountability for stablecoin issuers through the 'STABLE Act', with projections that Tether's US Treasury bond holdings could expand further if the bill passes.
However, the 'Stablecoin Innovation Act (GENIUS Act)' is currently on hold due to political interests. The Democratic Party's opposition has been influential, arguing that deregulation could be associated with specific interests, given the Trump family's involvement in digital asset-related businesses.
In response, over 60 major cryptocurrency industry figures held a rally in Washington D.C. on the 14th supporting the passage of the GENIUS Act. The bill primarily focuses on strengthening collateral requirements for stablecoin issuers and compliance with anti-money laundering (AML) regulations.
Tether's strategy of integrating with traditional finance and the movement to clarify regulations in the US are accelerating the stablecoin market's entry into the institutional framework. The industry is paying attention to whether Tether's expanded Treasury bond holdings will lead to the institutionalization of stablecoins and strengthen their position in the global financial market.
