Tether says it is top-10 T-bill buyer as GENIUS Act debated

Plausible: Tether targeting top-10 purchaser of U.S. Treasury bills

Bo Hines, head of Tether’s U.S. arm, said the company expects to become a top-10 purchaser of U.S. Treasury bills in 2026, as reported by The Block. The outlet also noted Tether already held more T-bills than Germany, placing it among top‑20 holders globally by one ranking.

Top‑10 status can be measured by purchase flow or holdings, and methodologies vary across timeframes. Distinguishing purchases from end‑period holdings is critical when evaluating progress.

Why it matters: yields, liquidity, GENIUS Act compliance, market structure

If a large, steady buyer accumulates bills, marginal demand can compress short‑end yields and smooth secondary‑market liquidity. This is where stablecoin reserve growth intersects with money‑market structure.

Based on a working paper by Ante, Saggu, and Fiedler on arXiv, Tether held about $98.5 billion of T‑bills by Q1 2025, roughly 1.6% of supply. The authors link a 1 percentage‑point rise in Tether’s share to roughly a 14–16 basis‑point drop in 1‑month bill yields, with effects intensifying beyond a threshold.

Regulatory alignment is another driver. The U.S. GENIUS Act requires 1:1 backing in high‑quality, liquid assets such as short‑term Treasuries or cash, monthly independent audits, and strong custody controls, according to Elevenews.

Against that backdrop, Tether’s U.S. management has framed bill purchases as a strategic response to rising demand and new rules. “We expect this year we’ll end up being a top‑10 purchaser of T‑bills,” said Bo Hines, CEO of Tether’s U.S. arm.

Risk perceptions remain mixed. S&P Global has described Tether’s risk profile as “weak,” citing transparency, reserve management, and exposure to higher‑risk assets , reminders that large Treasury allocations do not, by themselves, resolve every concern.

USDT vs USAT vs USDC: compliance, transparency, and risks

USDT vs USAT: reserve assets, audits, and GENIUS Act alignment

USAT is structured for U.S. oversight under the GENIUS Act, while USDT continues serving global markets. FXCintel reports USDT’s reserves still include gold, cryptocurrencies, and secured loans, and that some U.S.‑registered audit elements are not yet in place.

This dual‑token approach separates a U.S.‑regulated product from a broader international token, aligning domestic reserves and attestations without disrupting USDT’s existing distribution. It also clarifies which reserves, audits, and custody standards apply in the U.S. perimeter.

How USDC compares on transparency, custody, and regulatory posture

USDC’s positioning emphasizes regulatory clarity, disclosures, and U.S. market alignment; Outlook India notes investors may favor permitted stablecoins amid heightened compliance scrutiny. That comparative posture may influence institutional onboarding and payment integrations.

Differences in transparency cadence, custody arrangements, and asset mix shape perceived risk. Under the GENIUS Act regime, issuers prioritizing cash and short‑dated Treasuries with frequent audits could gain distribution advantages.