Tether has become the 18th largest holder of U.S. Treasury bonds, surpassing South Korea with over $127 billion in holdings as of June 30, 2025. This development underscores Tether's growing influence in global finance and the increasing trust in its stablecoin, USDT. The company reported a $4.9 billion net profit for Q2, reflecting a strategic shift with reduced reliance on U.S. government debt. The crypto community has reacted positively to Tether's milestone, with no significant negative impact on major DeFi protocols. As of August 1, 2025, USDT maintains a price of $1.00 and a market cap of $163.68 billion. Tether's expanding role in traditional finance may attract further regulatory scrutiny as crypto assets continue to integrate with established financial systems.