CryptoSlate
Tether CEO Paolo Ardoino argued on the Aug. 31 Wolf of All Streets podcast that the company had created "the decentralized ownership of the US debt" through roughly 650 million users who were "basically holding some US Treasuries." The pitch frames USDT demand as a structural replacement for concentrated foreign holders of US government debt, on the theory that hundreds of millions of users will never coordinate a sudden sell.
Tether's own documents tell a narrower story. Users own transferable USDT tokens, eligible verified customers have a personal contractual right to redeem at face value less fees, and Tether International owns and manages the reserve assets. The company's latest Financial Figures and Reserves Report records reserves as Tether International's assets and treats issued tokens as refund liabilities at contractual redemption value, not pass-through claims on the underlying portfolio.
Why it matters
The structural distinction matters for anyone pricing stablecoin risk. Direct redemptions require verification, carry a $100,000 minimum and a fee of the greater of $1,000 or 0.1%, and remain at Tether's discretion, with explicit terms allowing suspension for legal, regulatory or risk reasons. Holders who exit through secondary markets transfer the token, they do not shrink Tether's liabilities. Reserve gains above token face value do not flow through to holders either, which means Tether captures the Treasury carry.
The 650 million figure itself is a Tether attribution, not an independent count. Its 2024 methodology note treated on-chain addresses as a proxy and upper-bound estimate and acknowledged that one person can control multiple wallets. The Q4 2025 report estimated 534.5 million users on that broad basis, with no published methodology for the higher number Ardoino used.
Market impact
The Treasury exposure is real and large. As of June 30, Tether International reported $187.751 billion in reserve assets against $183.642 billion in liabilities, including $114.961 billion of direct US Treasury bills and $18.626 billion of overnight reverse-repo exposure backed by roughly $18.596 billion of US Treasuries.
Frequently asked questions
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What did Paolo Ardoino claim about Tether and US debt?
On the Aug. 31 Wolf of All Streets podcast, Ardoino said Tether had created "the decentralized ownership of the US debt" through roughly 650 million users who were "basically holding some US Treasuries," framing stablecoin demand as a replacement for concentrated foreign holders.
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Who actually owns Tether's reserve assets?
Tether International. The company's latest Financial Figures and Reserves Report records reserves as Tether International's assets and treats issued USDT as refund liabilities at contractual redemption value, not pass-through claims on the underlying portfolio.
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What rights do USDT holders actually have?
Holders own transferable USDT tokens. Eligible verified customers have a personal contractual right to redeem at face value less fees. Direct redemptions require verification, a $100,000 minimum and a fee of the greater of $1,000 or 0.1%, at Tether's discretion.
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How large is Tether's direct US Treasury exposure?
As of June 30, Tether International reported $114.961 billion in direct US Treasury bills, plus $18.626 billion of overnight reverse-repo exposure backed by roughly $18.596 billion of US Treasuries, against $187.751 billion in total reserves.
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Where does the 650 million user figure come from?
It is a Tether attribution. Its 2024 methodology note treated on-chain addresses as a proxy and upper-bound estimate and acknowledged that one person can control multiple wallets. The Q4 2025 report estimated 534.5 million users on that broad basis, with no published methodology behind the higher number.
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