Tether Shocks Wall Street With $127B in Treasuries – What’s the Catch?

Key Points

1. Tether holds $127 billion in U.S. Treasuries ($105.5B direct, $21.3B indirect), surpassing countries like Germany in U.S. debt ownership.

2. Tether reported a net profit of $4.9 billion in Q2 2025, with $3.1B from recurring operations and the rest from Bitcoin and gold holdings.

3. USDT's circulating supply grew to $157 billion by June 2025, up $20 billion since the start of the year, commanding over 62% of the stablecoin market.

4. Tether has amassed $8 billion in gold reserves stored in a private Swiss vault, aiming to reduce custody costs and hedge against U.S. debt concerns.

5. Tether is preparing for a U.S. market re-entry, focusing on institutional payments and interbank settlements, amid a friendlier regulatory climate.