Tether and Circle Now Hold More US Debt Than Several Nations

Circle and Tether Quietly Amass More US Debt Than Germany, South Korea, and the UAE

Stablecoins are digital tokens pegged to the US dollar and backed by reserves, often in US Treasury bills (T-bills). The structure ensures that one token can reliably be redeemed for one dollar.

This stability makes them attractive for cross-border payments and as a settlement layer for the crypto ecosystem.

Two leading stablecoin issuers, Tether (USDT ($1.00)) and Circle (USDC ($1.00)), hold more US government debt than several major national economies. This includes Germany, South Korea, and the United Arab Emirates.

Tether, the largest stablecoin issuer, now holds over $100 billion in T-bills. According to data from the Treasury Department, it ranks as the 18th-largest overall holder of US debt, above the UAE ($85 billion).

Circle, the issuer of USDC, holds between $45 billion and $55 billion in T-bills, putting it ahead of South Korea (approximately $75 billion) if measured individually.

Combined, the two companies surpass all three countries, with a recent Apollo report highlighting just how quickly the sector is rising.