TLDR

Tether plans to increase its U.S. Treasury bill purchases in 2026 to enhance reserve stability and liquidity.
The decision reflects Tether’s conservative approach to reserve management, focusing on low-risk, highly liquid assets.
Tether’s U.S. Treasury bill holdings currently account for over 83% of its reserves, positioning it as a major holder of U.S. debt.
The move aligns with global regulatory expectations for stablecoin issuers to hold reserves in government-backed securities.
As demand for USDT rises, Tether is expanding its Treasury bill purchases to maintain stability and secure liquidity for its growing user base.

Tether has announced plans to increase its purchases of U.S. Treasury bills in 2026, signaling a shift toward more liquid and low-risk assets. This move is part of a broader trend in the stablecoin sector, with an increased focus on asset quality and transparency. The expansion aims to further secure Tether’s reserve management strategy and provide greater liquidity and redemption capacity.

Tether to Boost U.S. Treasury Bill Holdings

Tether’s decision to increase its purchases of U.S. Treasury bills demonstrates a conservative approach to its reserve management. The move is a direct response to growing regulatory scrutiny and market volatility. U.S. Treasury bills are considered among the safest and most liquid assets in the world, offering stability and a low-risk profile for Tether’s reserves.

Currently, Tether holds over $122 billion in U.S. Treasury bills, making it one of the largest private holders of U.S. government debt. This position underscores the company’s commitment to maintaining stability in its stablecoin reserves. As of now, over 83% of Tether’s reserves are held in U.S. Treasury bills, providing liquidity while minimizing risk.

The Stablecoin market is ripe for disruption:

In just 9 months in 2025, Tether ALONE reported $10 BILLION in profit from $USDT.

How is this possible?

Tether reported $137 BILLION in US Treasury holdings, making the company the 17th largest holder of US debt.

Tether takes the… pic.twitter.com/FdheYmLReg

— The Kobeissi Letter (@KobeissiLetter) February 9, 2026

Stablecoin Reserve Practices Align with U.S. Policy Expectations

The shift toward U.S. Treasury bills also aligns with global regulatory expectations for stablecoin issuers. Policymakers in multiple jurisdictions are advocating for reserves to be held predominantly in government-backed securities. By increasing its Treasury bill holdings, Tether is positioning itself to meet these evolving regulatory frameworks.

Tether’s decision reflects the growing trend of stablecoin issuers favoring high-quality, low-risk government securities. This move not only strengthens the company’s reserve management strategy but also ensures that Tether remains in compliance with emerging regulations. The decision to purchase more U.S. Treasury bills could further solidify Tether’s role as a leader in the stablecoin market.

Increased U.S. Treasury Bill Purchases Reflect Growing Demand for USDT

The expansion of Tether’s Treasury bill holdings comes as the demand for USDT continues to grow. USDT is the largest stablecoin by market capitalization and is used across various platforms, including exchanges and decentralized finance (DeFi). Tether’s CEO, Bo Hines, revealed that the company plans to increase its exposure to short-term U.S. government debt as the demand for its stablecoin rises.

As the total supply of USDT approaches $185 billion, Tether’s increased reliance on Treasury bills is a response to both growing market demand and the need for greater liquidity. In 2025, Tether reported a profit of $10 billion, largely driven by its $137 billion in Treasury holdings. This demonstrates the lucrative nature of Tether’s Treasury investments, especially as interest rates have surged globally. Tether’s expansion into U.S. Treasury bills in 2026 reflects a careful and calculated approach to maintaining liquidity and stability for its growing user base.

The post Tether to Increase U.S. Treasury Holdings in 2026 Amid Growing Demand appeared first on CoinCentral.

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Filed under: News - @ February 12, 2026 12:33 pm