Bo Hines, CEO of the US division of Tetherhas indicated that the firm would consolidate itself as one of the top 10 holders of US Treasury bonds. before him explosive rise in demand for USDT according to Debashree Patra en Coinpedia.
This change is due to the explosive demand for USDT, the largest stablecoin in the world, and the launch of USAT, your new US-compatible counterpart In his speech at the Bitcoin Investor WeekHines noted that as stablecoin issuance grows, so will Tether’s interest in short-term government debt.
USDT currently has approximately 185 billion dollars in circulation and serves an estimate of 530 million usersadding about 30 million new ones every quarter. To support this offering, Tether owns more than $122 billion in US Treasury bondswhich represents more than 83% of their reserves. At current levels, this places Tether among the 20 main global holders of American public debt, between important sovereign countries such as Germany and Saudi Arabia.
When did stablecoins become a profit driver?
The turning point for Tether’s influence came with the global rise in interest rates. With higher Treasury yields, stablecoin reserves became significantly more profitable. According to The Kobeissi LetterTether reported 10 billion dollars in profits only in the first nine months of 2025supported by $137 billion in Treasury bond holdingswhich positioned it as the 17th largest holder of US debt at that time.
The model is simple but powerful: users mint USDT and receive a dollar-pegged digital token that does not earn interest. Tether invests the underlying reserves in short-term Treasuries and captures the yield differential. In effect, stablecoin users provide capital at no cost, while Tether earns interest on highly liquid government securities.
What makes Tether the best option?
Tether’s dominance is based on its liquidity, global accessibility and confidence in the stability of reimbursements. USDT remains deeply integrated into exchanges, DeFi, and emerging markets, making it the leading on-chain dollar substitute. The introduction of USED, issued through Anchorage Bank and structured under the US GENIUS Act, further strengthens its regulatory position. USAT is designed to meet strict 1:1 high-quality asset support requirements, indicating its alignment with US compliance standards.
This dual-token approach, global USDT and compatible USAT, strengthens Tether’s reach in both offshore and regulated markets.
Impact on cryptocurrencies and the market
Tether’s growing presence in Treasury bonds links the cryptocurrency liquidity directly with US debt markets. As the supply of stablecoins increases, so does the demand for Treasury bonds, making cryptocurrency adoption a driver of sovereign debt purchases.
However, growing scrutiny is emerging over whether stablecoin issuers should share yield with users. Competitors like $JUPUSD de Jupiter They seek to redistribute Treasury bond yields on-chain. If that model gains traction, it could transform the stablecoin landscape and challenge Tether’s high-margin dominance.