Tether, issuer of the stablecoin USDT, has reached a new record by holding $127 billion in US Treasuries. This significant event is not just for the company but for the entire crypto ecosystem.
Tether's Treasury Investments
According to recent reports, Tether maintains its strategy by investing in liquid, low-risk assets. US Treasuries make up the majority of the company's reserves, providing users with confidence in the stability of their digital holdings.
Comparison with South Korea and Saudi Arabia
Tether's current assets exceed $126 billion held by South Korea. This flip in positions demonstrates the growing influence of stablecoin issuers in the global financial system. Tether is closing in on Saudi Arabia, which has about $135 billion in Treasuries, and if growth continues, Tether could soon surpass this country as well.
The Role of Stablecoins in Global Finance
Tether's expansion reflects the rising role of stablecoins as tools for global trade and investment. As demand for USDT increases, so does the need for reliable, dollar-denominated assets. With over 70% of its reserves in Treasuries, Tether positions itself not just as a crypto company but as a major financial player on the global stage.
The growth of Tether's assets highlights changes in the financial landscape, particularly the increasing influence of private crypto firms. This raises questions about regulatory oversight and the long-term sustainability of such assets.
