Have you ever pondered how Tether, a leading global stablecoin issuer, has managed to outpace several countries in acquiring US Treasury bills? The Chief Technology Officer of Tether, Paolo Ardoino, recently shed light on this intriguing fact. He revealed that Tether, currently sitting in the 22nd position globally, has amassed a remarkable $72.5 billion in US Treasury bonds. This figure puts Tether ahead of countries like the United Arab Emirates, Mexico, Australia, and Spain in terms of Treasury holdings.
The Expansion of Tether’s US Treasury Holdings Amidst Global Financial Shifts
Since the start of the year, Tether’s circulation has soared from 66 billion to a whopping 82.8 billion, marking a growth of over 25%. This surge has occurred despite a contraction in the stablecoin market following a period of intense volatility. As the global economic landscape undergoes significant changes and the crypto market transforms, Tether’s substantial investment in US Treasury bills and its dominance within the stablecoin space highlight the increasing relevance of cryptocurrencies in global finance.
“USDt is the most used stablecoin globally, with a significant focus on emerging markets. For many of these communities, USDt serves as a lifeline, protecting them from the severe inflation of their national currencies,” Ardoino emphasized.
Comparison with Other Players
Meanwhile, Circle, another prominent player in the crypto space, holds an impressive $8.4 billion in US Treasuries according to its July certification. On the other hand, China has been rapidly reducing its holdings of US Treasury bills, shifting its investments towards gold. Ivan Bayoukhi, founder of Wall Street Silver, disclosed that China has cut its US Treasury debt ownership to nearly $481 billion from peak levels, significantly accelerating the selling rate.
Tether’s Reserves and Blockchain Presence
In a recent transparency report, Tether unveiled $3.3 billion in excess reserves, implying that its tokens are over 100% backed. The stablecoin giant’s assets amount to $86.1 billion, while its liabilities, in the form of dollar-pegged USDT tokens issued across several blockchains, stand at $82.8 billion. The Tron blockchain circulates nearly 42.5 billion USDT, the highest amount, followed by approximately 38.4 billion trades on Ethereum and nearly 800 million USDT on Solana. The presence of USDT on 11 other blockchain networks makes up the remaining portion.
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