Stablecoin issuer Tether has added $1 billion worth of Bitcoin to its reserves, according to on-chain data, reinforcing its strategy of holding the world’s largest cryptocurrency as part of its backing assets. The move comes as the circulating supply of USDT nears $175 billion, underscoring the token’s dominant role in global digital asset markets.

Blockchain data indicates that Tether continues to increase its Bitcoin exposure as part of its reserve management strategy, diversifying beyond traditional assets such as U.S. Treasury bills and cash equivalents. The company has previously highlighted Bitcoin’s long-term potential as both a store of value and a hedge against inflation.

“Tether is committed to maintaining a strong, transparent reserve base that supports the growth of USDT across global markets,” the company said in a statement earlier this year.

The latest purchase highlights Tether’s expanding influence, with USDT remaining the largest stablecoin by market capitalization and daily trading volume. Analysts note that the token plays a critical role in providing liquidity across exchanges and decentralized finance (DeFi) platforms, particularly in emerging markets where access to U.S. dollars is limited.

While critics continue to call for deeper transparency into Tether’s reserve composition, the firm’s consistent addition of Bitcoin signals confidence in the asset’s role within its balance sheet. The $1 billion purchase further cements Bitcoin as a key part of Tether’s long-term financial strategy.