The stablecoin giant also reported more than $1 billion in operating profit in the first quarter. This was driven by traditional asset holdings like Treasury bills and gold, which cushioned the impact of crypto market volatility. As the US debates stablecoin regulation through bills like the STABLE Act and the GENIUS Act, Tether’s growing influence proves the increasing institutional acceptance of stablecoins.
Meanwhile, Tether also recently backed a massive Bitcoin acquisition on behalf of Twenty One Capital by purchasing $458.7 million worth of BTC as the firm prepares for a public listing via a SPAC merger. With backing from SoftBank and Bitfinex, Twenty One now ranks as the third-largest corporate Bitcoin holder and plans to become the top institutional vehicle for Bitcoin exposure. Overall, it is quite clear that Tether is expanding its footprint across traditional and crypto markets.
Tether Ranks Among World’s Largest Treasury Holders
Tether, the leading stablecoin issuer with over $151 billion in assets, surpassed Germany in United States Treasury bill holdings. According to data from the US Department of the Treasury and Tether’s Q1 2025 attestation report, the firm now holds more than $120 billion in US Treasurys, placing it ahead of Germany’s $111.4 billion and ranking it as the 19th largest holder among all countries and entities.
Countries holding US Treasury bills (Source: Treasury.gov)
The attestation report also revealed that Tether generated more than $1 billion in operating profit during the first quarter of 2025. This performance was driven primarily by its holdings in US Treasury bills, which are widely regarded as one of the safest and most liquid investment instruments globally.
The firm shared that while the broader crypto market experienced downside volatility in Q1, its traditional asset reserves—including Treasury bills and gold—helped mitigate potential losses. In particular, the gains from gold investments nearly offset the impact of crypto-related fluctuations, which certainly helped confirm the strength of Tether’s asset mix.
Tether’s expanding influence comes at a time when stablecoin regulation in the United States is in flux. Growing regulatory clarity could help boost demand for USDT, prompting the company to expand its reserves even more.
Two key legislative proposals are at the center of the regulatory conversation. The STABLE Act, which aims to increase transparency and accountability for stablecoin issuers, has advanced through committee and is now awaiting a floor vote in the House. Meanwhile, the GENIUS Act, which focuses on stablecoin collateralization standards and anti-money laundering compliance, has stalled due to political resistance.
Despite this, a strong show of support from top crypto founders in Washington, D.C., suggests that regulatory momentum may soon pick back up.
US Stablecoin Law Still on Track
The push for comprehensive stablecoin regulation in the United States is still going forward despite a recent setback in the Senate. Cody Carbone, CEO of the Digital Chamber, a prominent Washington-based blockchain advocacy group, is still very optimistic about the eventual passage of the GENIUS Act, formally titled the Guiding and Establishing National Innovation in US Stablecoins of 2025.
Cody Carbone
In an interview at Consensus 2025, Carbone explained that although the bill failed to pass a procedural vote earlier this month, it is only a temporary delay and not a derailment of momentum. According to him, the bill is likely to pass in the coming weeks, especially as Congress already moved faster on this issue than many expected. Carbone also talked about the bipartisan appeal of stablecoin regulation, and argued that protecting the US dollar's global dominance should be a shared goal across party lines.
The GENIUS Act is seen as a crucial legislative framework that could shape the future of stablecoin issuance and compliance in the United States. Failing to pass meaningful reform before the 2026 midterm elections could potentially roll back the progress that was made in creating a favorable regulatory environment for digital assets. Despite the procedural hiccup on May 8, negotiations are ongoing, and advocates are hopeful that the revised version of the bill will find the necessary support in the Senate soon.
Part of the GENIUS Act (Source: US Senate)
The initial failure of the bill was blamed on partisan disputes and growing controversy surrounding former President Donald Trump’s involvement in the crypto space. Several Democratic senators withdrew their support due to ethical concerns over Trump’s links to meme coins, NFTs, and decentralized finance.
Coinbase’s chief legal officer Paul Grewal had similar concerns, and suggested Trump’s digital asset complicated the regulatory debate. In response, Republican Senator Tim Scott accused Democrats of allowing political motivations to obstruct necessary financial innovation.
The most recent version of the GENIUS Act reportedly removes references to the Trump family in an attempt to push the legislation through. Industry insiders believe the revised bill could pass by the end of May.
Tether Backs Major Bitcoin Play
Meanwhile, Tether recently made a large Bitcoin purchase on behalf of Twenty One Capital, a Bitcoin-focused investment firm it backs. Tether bought nearly half a billion dollars' worth of BTC in anticipation of the company’s upcoming public debut.
According to a US Securities and Exchange Commission (SEC) filing on May 13, Tether purchased 4,812.2 Bitcoin for $458.7 million at an average price of $95,319 per coin. The purchase was transferred into an escrow wallet on May 9, boosting Twenty One’s total Bitcoin holdings to 36,312 BTC.
This positioned Twenty One as the third-largest corporate Bitcoin holder globally, behind only Strategy and MARA Holdings. Strategy holds approximately 568,840 BTC, while MARA controls around 48,237 BTC, according to BitcoinTreasuries.net. Once the firm completes its Special Purpose Acquisition Company (SPAC) merger with Cantor Equity Partners, it plans to trade under the ticker XXI. The merger is still undergoing regulatory approvals, though CEO Jack Mallers confirmed the process is underway.
Tether, along with crypto exchange Bitfinex, holds a majority stake in Twenty One. The merger is being sponsored by Cantor Fitzgerald, a major Wall Street player providing financial advisory services and securing $585 million to help fund the firm’s growing Bitcoin portfolio. Japanese investment conglomerate SoftBank also threw its weight behind the venture by contributing $900 million. Together, Tether, SoftBank, and Bitfinex want to help Twenty One reach a total of 42,000 BTC before to its public listing, with Tether expected to contribute 23,950 BTC, SoftBank 10,500 BTC, and Bitfinex roughly 7,000 BTC in exchange for equity.
In an April presentation, Twenty One laid out its ambition to surpass Strategy as the leading Bitcoin investment vehicle. It markets itself as a “pure play” for institutional and retail investors looking for capital-efficient Bitcoin exposure. Twenty One plans to use Bitcoin per share as its primary performance indicator.
