Tether recently published its Q1 2025 Attestation Report, revealing a significant surge in its US Treasury bond investments. During the first quarter of the year, the company acquired over $65 billion in such assets.

The report also emphasized Tether's potential involvement in the global circulation of the US dollar, highlighting USDT as the primary digital representation of the currency. Currently, more than 80% of Tether's total assets are in the form of treasury holdings.

The reason behind Tether's substantial investment in US Treasury bonds becomes clearer when comparing it to the figures from their Q4 2024 report. At that time, Tether held $33 billion in Treasury bonds. However, by the end of Q1 2025, this amount had increased to $98.5 billion, with an additional $21.3 billion in indirect exposure.

Tether's latest report indicates that its overall assets now stand at $149.2 billion, with the majority being allocated to US Treasury bonds. This strategic shift towards bonds aligns with potential US stablecoin regulations that may require Tether to hold a significant portion of its reserves in such assets.

The company seems to be repositioning its operations to comply with US regulations, as hinted by discussions focused on enhancing the US dollar's global role. Tether's CEO, Paolo Ardoino, reiterated the company's commitment to supporting the US dollar's prominence in the evolving digital economy.

In light of these developments, Tether's expansive US Treasury holdings are poised to play a vital role in its future business endeavors, particularly in the US market.