Tether Becomes The 7th Largest Holder Of US Treasury Bonds

Tether strikes hard and establishes itself as a key player in the financial market. By becoming the 7th largest holder of U.S. Treasury bonds, the crypto company surpasses several nations. A rise that raises questions about the future of stablecoins and their place in the global economy!

Tether surpasses Canada and Taiwan in Treasury bonds

According to the data, Tether has invested 33.1 billion dollars in U.S. Treasury bonds. This amount exceeds those:

• from Canada;
• from Taiwan;
• from Norway.

This places the crypto company among the main buyers of government bonds.

According to Tether’s CEO Paolo Ardoino, this position is unique. Unlike the Cayman Islands and Luxembourg, these figures do not indeed result from an aggregate of hedge funds but from a single entity.

Why does a player in the crypto industry invest so much in traditional assets? Many investors consider Treasury bonds as a safe and liquid investment. Through its approach, Tether thus guarantees the stability of its USDT.

The boom of stablecoins: an indicator of a prolonged crypto bull run?

The stablecoin market is experiencing explosive growth. The proof: it has just surpassed 219 billion dollars in circulating supply. According to several expert crypto analysts, this sustained growth suggests that the current bull market is probably still halfway through. In other words, the rise of crypto-assets and the increased demand for stable digital assets could prolong the bull run.

Alongside this expansion, crypto regulation is accelerating in the United States. According to Kristin Smith, CEO of the Blockchain Association, a legislation governing stablecoins could be adopted as early as August 2024.

This law would provide a structured framework for stablecoin issuers. But not only that! It would also ensure better transparency for institutional investors and users. Enough to promote an even wider adoption of crypto-assets, while limiting risks associated with unregulated markets!

With a strategic positioning among the main holders of U.S. Treasury bonds, Tether thus establishes a new paradigm where crypto increasingly integrates with traditional finance. It remains to be seen if other blockchain giants will follow this path!