Tether, the leading stablecoin issuer, has become the 17th largest holder of U.S. Treasuries, amassing $135 billion in holdings. This positions Tether ahead of South Korea and just behind Brazil in terms of U.S. debt ownership. The company's Treasury portfolio has seen significant growth, increasing from $65 billion at the start of 2025 to over $127 billion by the end of the second quarter. CEO Paolo Ardoino highlighted that Tether's holdings now compare with those of major economies such as Germany and Saudi Arabia, underscoring the increasing role of stablecoin issuers in global financial markets. This expansion is largely attributed to regulatory requirements like the GENIUS Act, which mandates that stablecoin reserves be maintained in low-risk assets such as U.S. Treasuries.