Tether Surpasses Nations in U.S. Treasury Holdings, Becoming 22nd Largest Global Holder

By 0xGorki 09/5/23 9:29 AM

Tether’s Chief Technology Officer, Paolo Ardoino, recently took to Twitter to announce a significant milestone in the world of cryptocurrency. Tether, a well-known stablecoin, has now ascended to become the 22nd largest holder of U.S. Treasury bonds worldwide, boasting a staggering $72.5 billion in holdings. This remarkable achievement places Tether ahead of entire countries like the United Arab Emirates, Mexico, Australia, and Spain in terms of U.S. Treasury bond holdings.

The tweet by Ardoino, which stirred the cryptocurrency community, shed light on Tether’s growing influence and financial strength in the global market. He proudly proclaimed, “@Tether_to reached 72.5B exposure in US t-bills, being a top 22 buyer globally, above United Arab Emirates, Mexico, Australia, Spain…”

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

Tether, often represented as USDT, has emerged as the world’s most widely used stablecoin. Its popularity stems from its stability, as it is pegged to the value of the U.S. dollar, making it a reliable digital asset for users seeking to shield themselves from the extreme inflation experienced by their national currencies in many emerging markets.

Tether’s remarkable rise as a global U.S. Treasury bond holder is a testament to the growing importance of stablecoins in the world of finance. As traditional financial markets grapple with volatility and economic uncertainties, cryptocurrencies like Tether offer a haven of stability. This is particularly crucial in regions where rampant inflation can erode the value of local currencies, leaving citizens vulnerable to financial hardships.

One of the key reasons behind Tether’s success is its role as a lifeline for many communities in emerging markets. With the global reach of cryptocurrencies, individuals can access and transact in U.S. dollar-equivalent values, safeguarding their wealth from the ravages of hyperinflation. This use case has made Tether an essential tool for individuals and businesses operating in regions where economic stability is elusive.

Tether continues to maintain its position as the dominant stablecoin in terms of market capitalization, commanding a share of over 60% in the market. Despite a period of volatility that temporarily impacted the value of USDT during recent market turbulence, it has successfully bounced back. In the last 24 hours, its trading volume surged to more than $50 billion, a figure six times greater than that of its nearest rival, USD Coin (USDC).

Circle, the company behind USDC Coin, also made headlines with its sizable U.S. Treasury holdings. According to Circle’s monthly certification, they held more than $8.389 billion in U.S. Treasuries at the end of July. This further highlights the growing trend of cryptocurrency firms diversifying their portfolios with traditional financial assets.

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