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Tether, the issuer of USDT, the world's leading stablecoin, has amassed a staggering $72.5 billion in US Treasury bills, catapulting itself into the top 22 global investors.
Meanwhile, once a significant holder of US Treasury bills, China is rapidly divesting its holdings in favor of gold.
Given the potential economic implications, China’s decision to sell off its US Treasury holdings is surprising, but the numbers tell a different story. Ivan Bayoukhi, founder of Wall Street Silver, notes that China’s ownership of US Treasury debt has dropped by nearly $481 billion from its peak levels, with the selling rate accelerating.
China's ownership of US Treasury debt is down almost $481B from peak levels. The rate of selling is accelerating.
For many years the experts always doubted that China would dump our debt because of the impact on their own economy and currency.
You can see how the line is… pic.twitter.com/7AHZCHrEpl
— Wall Street Silver (@WallStreetSilv) September 4, 2023
Tether’s expanding portfolio takes on added significance in emerging markets, where it acts as a financial lifeline, shielding communities from hyperinflation. Paolo Ardoino, CTO of Tether, emphasizes USDT‘s role in preserving wealth in these regions.
Despite a minor 1.2% dip in market capitalization, Tether remains a dominant force with a market cap of $82.9 billion, far surpassing its closest rival, USD Coin (USDC). Additionally, Tether’s treasury reserve has grown by $850 million in the last quarter, reaching $3.3 billion.
Ardoino proudly states, “Tether now holds $72.5 billion in US Treasury bills, ranking among the top 22 global buyers, ahead of countries like the United Arab Emirates, Mexico, Australia, and Spain.”
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In the evolving stablecoin landscape, Tether’s accumulation of US Treasury holdings sets it apart. Binance’s BUSD faces increased regulatory scrutiny, and USDC has lost half of its market share in the past year.
Despite these challenges, Tether maintains its dominance with over 60% of the stablecoin market share. Ardoino concludes by stating their commitment to industry standards and their aspiration to inspire others.
Despite a brief deviation from its $1 peg during recent cryptocurrency market downturns, Tether’s USDT rebounded swiftly, trading over $50 billion in a 24-hour window, surpassing USDC by a significant margin. This resilience reinforces Tether’s leading position in the stablecoin ecosystem.