Main Points:
- Record Treasury Acquisitions: Tether’s CEO Paolo Aldoino announced that the company has acquired a further $33.1 billion in U.S. Treasuries during 2024, making Tether the world’s 7th largest buyer by net purchase volume.
- Massive Holdings: With these new purchases, Tether’s total U.S. Treasury holdings have reached $94 billion as of December 2024, surpassing the treasury holdings of countries like Germany and Saudi Arabia, which are estimated around $60–70 billion.
- Auditing and Transparency Issues: Although Tether issues regular attestations from external accounting firms, it has not undergone a comprehensive audit, and concerns about transparency regarding its reserve assets persist.
- Regulatory Environment: With the U.S. Congress considering the “GENIUS Act” on dollar-backed stablecoin regulations, Tether’s strategy to back its stablecoin with U.S. Treasuries is seen by some experts as a reasonable approach to support the dollar’s status as the global reserve currency.
1. Overview of Tether’s Treasury Acquisitions
Tether’s CEO, Paolo Aldoino, recently announced that the company acquired an additional $33.1 billion in U.S. Treasuries during 2024. This substantial purchase positions Tether as the 7th largest buyer in terms of net U.S. Treasury acquisitions worldwide for the year. This development is significant for Tether, as it demonstrates its aggressive strategy to back its stablecoin, USDT, with high-quality, liquid assets.
2. Massive Holdings Surpassing Global Counterparts
The new acquisitions have brought Tether’s total U.S. Treasury holdings to an impressive $94 billion by the end of 2024. This figure exceeds the treasury holdings of major global players such as Germany and Saudi Arabia, whose respective holdings are estimated to be in the $60–70 billion range. This strategic move is designed to bolster investor confidence in Tether’s reserve strategy and enhance the credibility of its stablecoin.
3. Auditing and Transparency Considerations
Tether has consistently released periodic attestations from external accounting firms to verify its reserve assets. However, the company has not yet undergone a full-scale, comprehensive audit. Past criticisms regarding the opacity of its reserve backing continue to fuel cautious sentiment among market participants. The ongoing scrutiny highlights the importance of transparency as regulatory frameworks evolve.
4. Regulatory Context and Future Implications
Amid ongoing discussions in the U.S. Congress regarding the “GENIUS Act” – a proposed regulatory framework for dollar-backed stablecoins – Tether’s focus on acquiring U.S. Treasuries is viewed by some experts as a logical step. By backing its stablecoin with highly liquid and secure assets like U.S. Treasuries, Tether aims to support the U.S. dollar’s status as the world’s primary reserve currency and meet potential regulatory expectations. The future of Tether’s strategy will likely hinge on both enhanced transparency and the evolving regulatory landscape.
5. Conclusion
Tether’s recent announcement that it has acquired an additional $33.1 billion in U.S. Treasuries during 2024—bringing its total holdings to $94 billion—positions the company as the 7th largest buyer of U.S. Treasuries globally this year. While this move reinforces Tether’s strategy to support its stablecoin with high-quality assets, ongoing concerns about the lack of a comprehensive audit and transparency remain. With potential regulatory changes on the horizon under the “GENIUS Act,” market participants will be watching closely to see how Tether navigates these challenges.
