Tether Holds $72.5B in US Treasury Bills, Becomes Top Buyer

Tether's US Treasury Holdings Highlight Importance in Emerging Markets

Stablecoin issuer Tether has emerged as one of the leading buyers of United States Treasury bills, with an exposure of $72.5 billion, according to Tether chief technology officer Paolo Ardoino. This places the company among the top 22 holders, surpassing countries such as Spain, Mexico, Australia, and the United Arab Emirates. Ardoino believes that Tether's significant holdings demonstrate the relevance of its stablecoin, USDT, in various emerging markets across the globe, acting as a lifeline for communities seeking to protect themselves against inflation in their national currencies.

Tether's Expansion Efforts

Tether continues its efforts to broaden its reach and partnerships. Earlier this year, the company reported its ownership of billions worth of T-bills and released a reserves attestation stating it holds up to $3.3 billion in excess reserves for its stablecoin. In addition, Tether recently added Britannia Bank & Trust, a private bank in the Bahamas, as a partner to facilitate dollar transfers within its platform. This new partnership joins Tether's existing roster of banking partners, including Deltec Bank and Capital Union Bank.

China Shifts Focus from US Debt to Gold

Amidst Tether's growing prominence in the US Treasury market, a report has surfaced highlighting China's decreasing interest in US T-bills. The country is reportedly reducing its ownership of US debt and reallocating its funds into gold. This shift in strategy by China further underscores the significance of Tether's position as a top buyer of Treasury bills.