Tether Holdings Becomes The World’s 22 Largest US Treasury Bond Holder

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Tether Holdings Becomes The World’s 22 Largest US Treasury Bond Holder
  • Tether Holdings Ltd. has become the world’s 22 largest holder of US Treasury Bonds.
  • The USDT issuer has surpassed leading economies like Australia, Spain, and the United Arab Emirates.
  • Tether’s stablecoin rival Circle held nearly $8.4 billion in U.S. Treasuries at the end of July 2023.

Tether Holdings Limited, the crypto giant behind the largest stablecoin by market capitalization, has become the world’s 22 largest holder of United States Treasury Bonds. The USDT issuer overtook nations like Australia, Spain, Mexico, and the United Arab Emirates to achieve this feat.

Tether’s Chief Technology Officer, Paolo Ardoino, took to X (formerly Twitter) earlier today to highlight the company’s massive U.S. Treasuries holdings. The stablecoin giant’s exposure to the U.S. Treasury Bills has reportedly exceeded $72.5 billion, making it one of the largest holders in the world.

Ardoino pointed out that as the most used stablecoin in the world, USDT paid particular attention to emerging economies. “For many of these communities USDT is a lifeline to protect themselves and their families from the insane inflation of their national currencies,” the Tether executive added.

Circle Internet Financial LLC, the issuer of the world’s second-largest stablecoin USD Coin, previously reported that it held $8.38 billion on U.S. Treasuries as of July 31, 2023. In June 2023, the USDC issuer ditched the long-term U.S. Treasuries from the Circle Reserve Fund citing concerns surrounding the United States’ debt ceiling.

Ardoino’s comments earlier today were in response to a tweet by Wall Street Silver, which highlighted China’s declining ownership of U.S. Treasury Debt. China’s U.S. Treasuries holdings had declined a whopping $481 billion from its peak, with a significant acceleration in the rate of selling.

The crypto influencer stated that China was dumping the bonds due to the impact on its own economy and currency. The country is reportedly swapping out its U.S. debt for gold. The crypto community on X predicted that the rate of selling would only increase in the future.