Tether (USDT) Surpasses Germany in US Treasury Holdings, Showing the Benefits of a Diversified Reserve Strategy

Tether, the $151 billion stablecoin issuance giant, has surpassed Germany in United States Treasury bill holdings, showcasing the benefits of a diversified reserve strategy

In the first quarter of 2025, Tether’s traditional reserve assets helped the stablecoin giant weather the downside volatility of the crypto market.

Tether reported over $1 billion in operating profit from “traditional investments” during the first quarter of the year, “driven by solid performance in its US Treasury portfolio, while the performance of Gold has almost offset the volatility in crypto markets,” according to the firm’s attestation report.

Growing clarity around US stablecoin regulations could lead to more investments in Tether’s dollar-denominated stablecoin, part of which will be used to further bolster the firm’s Treasury reserves.

The industry is currently awaiting progress on two pieces of legislation. The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act currently awaits scheduling for debate and a floor vote in the House of Representatives, after it passed the House Financial Services Committee on April 2 in a 32-17 vote.

However, the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, stalled on May 8 after failing to gain support from key Democrats, some of whom voiced concerns about US President Donald Trump’s potential financial interest in clearer crypto regulations, due to his family’s digital asset ventures.

On May 14, at least 60 of the top crypto founders gathered in Washington, DC, to support the GENUIS Act, which seeks to establish collateralization guidelines for stablecoin issuers and requires full compliance with Anti-Money Laundering laws.