Tether has become the seventh-largest foreign buyer of U.S. Treasuries, purchasing $28.2 billion in 2025, according to the Financial Times. This acquisition, combined with Circle's holdings, surpasses the Treasury investments of countries like South Korea and Saudi Arabia. U.S. Treasury Secretary Scott Bessent sees stablecoins as a means to bolster the dollar and manage U.S. debt, projecting the industry's growth from $300 billion to $3 trillion.
The rise of stablecoins has sparked regulatory debates between the banking and cryptocurrency sectors. JPMorgan Chase CEO Jamie Dimon and Coinbase CEO Brian Armstrong are at odds over stablecoin regulations, with banks worried about potential shifts in retail deposits to stablecoins. This regulatory impasse has also created divisions among Trump supporters, highlighting tensions between Wall Street banks and cryptocurrency industry donors.
Tether Emerges as Major U.S. Treasury Buyer with $28.2 Billion Purchase
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