Revealing Tether's Billions in Bond Investments: Insights from Paolo Ardoino on Their Position as the 7th Largest Buyer
Tether has significantly increased its holdings by purchasing $33 billion in U.S. Treasuries, positioning itself as the seventh largest buyer globally and emphasizing a shift towards stability and regulatory compliance.
Tether has bought $33 billion of U.S. Treasuries in 2024, making it the 7th largest buyer, surpassing even Canada. This move underscores Tether’s commitment to enhance the stability of its USDT token, take advantage of yield profits, and align with U.S. regulations like the GENIUS Act, despite ongoing compliance challenges.
The rationale behind USD-backed tokens is clear; their absence would drastically reduce the current $2.8 trillion market value of crypto. Without a dependable multi-chain stablecoin like USDT, trading would be beset with difficulties.
Tether
In a social media post, Paolo Ardoino, commented that despite trailing other major purchasers like the Cayman Islands, Tether remains strategically positioned amid significant offloading of U.S. Treasuries by several countries.
“Dollar-backed stablecoins will expand the dominance of the U.S. dollar for years to come,” said President Trump, highlighting the importance of Tether’s strategic pivot toward compliance with regulations that may soon be enforced. As a dominant issuer, Tether’s reliance on U.S. debt is a clear indication of its intent to secure its role in the evolving regulatory landscape.
While Tether has historically resisted third-party audits, it has taken steps to improve its transparency by hiring a new CFO, indicating a proactive approach towards compliance with forthcoming regulations.
The implications of these decisions for stablecoin dominance and compliance are profound, especially in light of the increasing competition posed by offerings like RLUSD and USDC.
