Tether is the biggest holder of U. S. Treasuries, with about $135 billion in bonds. That makes it larger than countries like South Korea and Germany. The company earns huge interest by putting the money from people who buy USDT into these bonds.

People or companies that want USDT send dollars to Tether. The firm then buys Treasury bills with that cash. It keeps the interest money for itself. In 2025, Tether made over $10 billion in profit from the first nine months. That is more than many large banks in the S&P 500.

Those who hold USDT are essentially lending Tether money for free. The rate is 0 %. Tether flips that capital into Treasuries and pockets the yield. Some new stablecoins, like JupUSD from Jupiter, try to share that yield with users. But the money only comes back if you deposit the coin into a lending platform, not just by holding it.

The stablecoin market is still new and could change quickly. A new law called the GENIUS Act will give rules for stablecoins, a sector worth about $315 billion. Treasury Secretary Scott Bessent said that stablecoins might bring $2 trillion more demand for U. S. Treasuries.

The big question is whether this setup is fair and safe. Critics worry that the concentration of Treasury holdings in one private company could pose risks to the financial system.

Stablecoins Grow Big, But Tether’s Treasury Tricks Raise Questions

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