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Tether Boosts T-Bill Holdings, Cuts Banks Exposure

  • Circulation of Tether’s USDT has jumped in recent months
  • Tether held 85% of reserves in cash and equivalents March 31
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Photographer: Tiffany Hagler-Geard/Bloomberg

Tether Holdings Ltd., the operator of the largest stablecoin, increased its holdings of US Treasury bills to $53 billion while simultaneously cutting its exposure to cash in the first quarter, following a slate of US bank closures that impacted rivals.

A third-party attestation of the $81.8 billion reserves backing its USDT token as of March 31 showed that around 85%, or $69.3 billion, of the collateral supporting USDT was stored in cash and cash-equivalents. Stablecoins are digital tokens that aim to keep a one-to-one value with a less volatile asset like the dollar, typically by maintaining large reserves as segregated collateral.