Recently, I noticed a pretty interesting phenomenon—Tether is quietly becoming an important player in the U.S. financial system.

Let's start with the data. Bo Hines, head of Tether's U.S. division, announced at the Bitcoin Investor Week conference that Tether is expected to rank among the top ten buyers of U.S. Treasury securities this year. It sounds insignificant, but think about what this means? The reserve size of a crypto company is already comparable to that of sovereign nations.

Why is this happening? The fundamental reason is the size of USDT. Currently, the circulating supply of USDT has reached $184.16 billion, making it the largest stablecoin by market cap. To support such a large amount of tokens, Tether must hold an equivalent amount of highly liquid assets. What's the best choice? Treasury bills. Safe, highly liquid, low risk—that's why Tether currently holds over $122 billion in short-term Treasury bills.

More importantly, user growth. Hines revealed that Tether adds about 30 million new users each quarter, with the total global user base now approaching 530 million. What does this growth rate imply? It means the circulation of USDT will continue to rise, and accordingly, Tether's demand for Treasury bills will also keep increasing. This creates a virtuous cycle—more users, greater reserve needs, and higher holdings of Treasury securities.

Interestingly, Tether's reserve structure is no longer just Treasury bills. According to data from BDO accounting firm, the company also holds about $6.3 billion in excess reserves and approximately 140 tons of gold (the 13th largest gold holder worldwide). This diversified reserve portfolio makes Tether's credit foundation look quite solid.

Another driving force comes from regulation. Tether recently launched a new stablecoin, USAT, which must comply with the GENIUS Act. This act requires stablecoins to be fully backed 1:1 by high-quality assets, such as short-term Treasury bills. This means that the growth of USAT will further boost Tether's demand for Treasury securities.

Overall, Tether is closely tying itself to the U.S. debt market through large-scale holdings of Treasury bills. This strategy not only enhances the credibility of the stablecoin but also makes Tether an increasingly important part of the U.S. financial system. If this trend continues, stablecoin issuers could really become some of the largest buyers of U.S. government debt.