Tether’s treasury holdings strengthen US debt resilience, CEO claims

Tether CEO Paolo Ardoino has defended the company’s role in the U.S. financial system, stating that its $115 billion in treasury holdings make U.S. debt more resilient.

Speaking at a rBitcoin Policy Institute event on Mar. 11, Ardoino argued that Tether’s (USDT) investment helps diversify and strengthen U.S. debt. “We’ve done more for financial inclusion than anyone else,” he stated. “And while doing that, we’re buying back U.S. debt. If we were a country, we’d be the 18th largest holder of U.S. Treasuries.”

Tether maintains dominance in the stablecoin market, commanding 63% of the market share and a $143 billion market capitalization, according to DeFiLlama data. Despite regulatory setbacks in Europe, the company posted a record $13 billion net profit in 2024, according to Forbes.

Tether has had to scale back its European operations, while Circle, its main competitor, has gained traction due to compliance with the Markets in Crypto-Assets regulations.

The USDT stablecoin from Tether is facing delisting on several European exchanges, including Binance, which announced that it will stop accepting USDT from users in the European Economic Area on Mar. 31. Similar actions have been taken by other companies, like as Crypto.com and Kraken, which have stopped offering USDT trading pairs to its European users.

Tether is also likely to face difficulties in the U.S. due to new regulations. The company will have to modify its reserve measures if a proposed stablecoin bill prevents offshore issuers from accessing U.S. Treasury markets, a move which could further benefit U.S.-based rivals like USD Coin (USDC).

As regulatory pressure grows, Tether made a strategic decision in January to relocate its headquarters to El Salvador after securing a Digital Asset Service Provider license. Although the business will set up a physical location in El Salvador, the majority of operations will continue to be conducted remotely.