There is an interesting development in the cryptocurrency world today. This statement came from Tether CTO Paolo Ardoino. Moreover, it provides some explanation to the Tether (USDT) reserve discussions that have been going on for years.
Tether and notable treasury bond holdings
Tether’s Chief Technology Officer Paolo Ardoino made a surprising statement today. Accordingly, he announced that Tether has a staggering $72.5 billion in US Treasury bonds. This remarkable achievement puts Tether ahead of countries such as the United Arab Emirates, Mexico, Australia and Spain. It also makes it the 22nd largest holder of US Treasury bonds in the world.
While @Tether_to reached 72.5B exposure in US t-bills, being top 22 buyer globally, above United Arab Emirates, Mexico, Australia, Spain, …$USDt is the most used stablecoin in the world, with a huge focus on emerging markets. For many of these communities USDt is a lifeline… https://t.co/7hC12Nhzdq
— Paolo Ardoino 🍐 (@paoloardoino) September 5, 2023
A noteworthy point here is Tether’s rising assets. In this context, it marks a turning point in the crypto space. Tether, one of the leading names in the cryptocurrency world, is reaching an unprecedented milestone with its significant holdings of US Treasury bills. While this development reveals the company’s increasing influence and financial strength, it also underlines its important role in the digital money world.
Circle’s notable assets: A major player
Tether isn’t the only one holding treasury bonds. In a parallel development, Circle, another major player in the cryptocurrency space, also holds bonds. Accordingly, it reported that it had assets exceeding $8.389 billion in US Treasury bonds as of July. This confirms the increasing participation of the crypto industry in traditional financial markets. On the other hand, it further blurs the lines between the two fields.
Meanwhile, apart from Tether, another notable trend is emerging in the global financial environment. China, once the largest shareholder of U.S. Treasury debt, is rapidly reducing its holdings. There is a decrease of approximately $481 billion from the highest levels. The divestment rate is also accelerating.
Analyzing China’s change
Experts have long been skeptical of China abandoning U.S. debt assets because of the potential repercussions on its own economy and currency. However, data shows an increasingly steepening curve in China’s divestment process. China is signaling a bold shift in investment strategy. He is also shifting his focus to acquiring Gold rather than US debt. This move is opposite to the Tether move.
When we look at Kriptokoin.com, Tether’s huge US Treasury bond assets attract attention. It also reflects the increasing convergence of the cryptocurrency and traditional financial sectors. This success raises Tether’s status in the global financial world. Simultaneously, China’s decisive shift away from US debt underscores a shifting paradigm in global economic dynamics. As these developments continue to occur, the financial world watches with great interest, anticipating their profound effects.
