Tether, a major stablecoin issuer, has become the 22nd largest holder of US Treasury bills (T-bills). This puts Tether ahead of several countries, including the United Arab Emirates, Australia, and Mexico, in terms of US debt holdings. Tether currently has a market capitalization of around $82.9 billion, with nearly 87% of that capitalization backed by the $72.5 billion in US T-bill holdings. Tether and other major stablecoin issuers earn most of their revenue from short-term Treasury instruments, such as T-bills. Tether’s CTO Paolo Ardoino tweeted that the “interest on the T-Bills” was the primary drive behind Tether’s $850 million profits in Q2 2023. In May, stablecoin issuer Circle offloaded over $30 billion of its US Treasury bonds, aiming to lessen the potential impacts of the US debt ceiling crisis. In June, MakerDAO, the decentralized stablecoin issuer of DAI, increased its US Treasury holdings to $1.2 billion. Tether has become a major player in the US Treasury market, surpassing several countries in terms of US debt holdings. The company’s CTO has attributed their second-quarter profits to the interest earned on their T-bill holdings. Other stablecoin issuers have also been active in the US Treasury market, with Circle offloading over $30 billion of its US Treasury bonds and MakerDAO increasing its US Treasury holdings to $1.2 billion.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 🇳🇱 🇧🇲 🇩🇪 🇦🇪 🇦🇺 🇲🇽 |
| Sentiment | neutral |
| Relevance Score | 9 |
| People | MakerDAO, Paolo Ardoino |
| Companies | DAI, Circle, Tether, US Department of the Treasury, MakerDAO |
| Currencies | Tether, Etherland, Bermuda, Dai, Bitcoin, Ethereum, germany, Threshold Network |
| Securities | None |
