On February 11, 2026, at the New York Bitcoin Investors Week conference, a landmark signal emerged: Bo Hines, CEO of Tether USA₮, publicly stated that he expects Tether to officially become one of the top ten buyers of U.S. Treasury bonds in 2026. This announcement not only spotlighted the reserve strategy of the world’s largest stablecoin issuer, but also revealed that USAT—a new, fully compliant stablecoin designed specifically for the U.S. market—is becoming the driving force behind Tether’s increased Treasury holdings.
As stablecoins become deeply intertwined with sovereign debt instruments, Tether is evolving from a pure cryptocurrency issuer into a quasi-national participant that can influence the U.S. Treasury’s rankings.
From "Top 20" to "Top 10": Tether’s Leap in Treasury Purchasing Power
According to Tether’s latest reserve attestation, 83.11% of its USDT reserves are allocated to short-term U.S. Treasuries, with a nominal value exceeding $122,000,000,000. If ranked among foreign holders of U.S. Treasuries, this position would place Tether between Germany and Saudi Arabia, making it one of the world’s top 20 holders.
Bo Hines emphasized that USDT alone serves approximately 530 million users, with quarterly growth reaching 30 million. As the user base continues to expand, Tether must consistently purchase highly liquid, dollar-denominated assets to maintain its 1:1 peg. The launch of USAT is transforming this "passive reserve demand" into "active, compliant expansion."
USAT: The Compliance Lever for Upgrading Treasury Holdings
USAT is not simply a substitute for USDT. It is Tether’s first stablecoin issued fully under the federal framework of the U.S. GENIUS Act. The act requires regulated stablecoins to be issued by federally chartered banks, with reserves 100% comprised of short-term U.S. Treasuries and other high-quality liquid assets.
To meet these requirements, Tether has built institutional-grade compliance infrastructure:
- Issuer: Anchorage Digital, the first federally chartered crypto bank in the U.S.
- Reserve Custodian: Cantor Fitzgerald, a leading Wall Street brokerage.
This structure enables USAT to qualify for integration with mainstream U.S. payment and settlement systems from day one. Bo Hines, who previously served as Executive Director of the White House Crypto Committee and helped advance the GENIUS Act, brings clear "embedded regulatory" logic to the USAT product.
Dual-Channel Reserves: How USDT and USAT Collaborate to Increase Treasury Holdings
During the conference, Hines specifically mentioned that USDT and USAT will establish "interoperability" and "mutual benefit." This means:
- Global users can continue to enjoy permissionless, efficient digital dollar experiences via USDT.
- U.S.-based institutions can use USAT to meet compliance requirements for custody, on-chain settlement, and federal audits.
Both product lines share Tether’s unified reserve pool. Every newly issued USAT directly corresponds to additional purchases of U.S. Treasuries. With the U.S. stablecoin market projected to surpass $2,000,000,000,000 in the coming years, the demand for Treasury allocations driven by USAT could far outpace the current growth rate of USDT.
This is the foundation for Tether’s bold "top ten buyer" target.
Market Data Insights: Price Stability and Capital Efficiency of the Leading Stablecoin
As of February 12, 2026, Gate market data shows:
- Tether (USDT) is priced at $1.00, with a 24-hour change of +0.0013% and trading volume reaching $87,080,000,000.
- Market capitalization is locked at $184,020,000,000, with a market share of 7.91%.
- Circulating supply stands at 18.402 billion USDT, with ample reserve coverage.
USDT’s price action reveals exceptional stability, with a 24-hour high of $0.9999 and a low of $0.9993. Its peg performance is remarkably steady. The all-time high of $1.32 occurred during extreme market conditions in 2018, but the current price has long stabilized at the $1.00 benchmark.
Notably, USDT’s annual price volatility is just -0.028%, effectively eliminating exchange rate risk. This "ultra-stability" is rare among assets and relies on the issuer’s ongoing, large-scale holdings of U.S. Treasuries with stable yields. Tether’s $122,000,000,000 in Treasury holdings provides $122 billion in on-chain liquidity ballast for the entire crypto market.
Market sentiment is rated "neutral," with fully diluted market capitalization at $191,180,000,000 and a current market cap ratio of 96.25%. This indicates that almost all authorized USDT is actively circulating, with no significant hoarding or freezing.
Price prediction models show that USDT’s average price is expected to remain at $1.00 throughout 2026, with a narrowing fluctuation range around $1.00. By 2031, sustained Treasury reserves will keep USDT pegged at $1.00, with stable potential returns. USDT is not a speculative instrument—it is the unit of account for the digital dollar.
Macro Perspective: Stablecoins Are Reshaping Dollar Dominance
Bo Hines also revealed two data points often overlooked by mainstream media: Tether is not only a major holder of U.S. Treasuries, but also ranks as the world’s thirteenth largest holder of gold, with about 140 tons of physical gold.
This "Treasuries + Gold" dual-reserve structure gives Tether’s balance sheet the characteristics of a sovereign wealth fund. When USAT circulates compliantly within the U.S., every USAT transaction provides low-interest financing to the federal government.
Stablecoins are no longer just trading tools for the crypto market. They have become, in effect, new "offshore buyers" for the U.S. Treasury—even though this buyer is registered offshore, the GENIUS Act brings its asset allocations fully under federal regulatory oversight.
Gate continues to monitor the evolution of stablecoin ecosystem infrastructure. USDT delivers depth and liquidity to the global crypto market, while USAT provides a compliant gateway for U.S. institutions. Whichever path you choose, Gate offers authentic, secure, and instant digital asset trading services.
