- Project Sela, a CBDC venture, combines the agility of the private sector with central bank oversight.
- The introduction of “Access Enablers” has increased competition and increased security.
Tether, a stablecoin, holds $72.5 billion in U.S. Treasury bonds. This impressive portfolio puts Tether ahead of the UAE, Mexico, Australia, and Spain in government bond holdings. The rise of the cryptocurrency giant to 22nd place among global government bond holders signals a change in the financial and cryptocurrency paradigm.
China Reduces U.S. Treasury Influence; Tether enhances retention
Wall Street Silver, a prominent investment community, reported that China’s holdings of U.S. Treasury bonds fell by $481 billion. This decline brought China’s holdings of U.S. Treasury notes to their lowest level in a decade. Despite long-standing speculation that China would maintain U.S. Treasury debt due to internal economic and monetary ramifications, the country appears to be diversifying its assets by purchasing gold. In response to this changing global financial environment, Tether’s CTO Paolo Ardoino announced that the company’s exposure to US Treasury bonds amounted to $72.5 billion.
Global stablecoin powerhouse
With its impressive holdings of government bonds, Tether has not only surpassed several countries, but also reaffirmed its dominance in the stablecoin market. According to Ardoino, USDT (Tether’s stablecoin) has gained enormous popularity, especially in emerging markets. In these regions, USDT serves as a central financial tool that protects individuals from sudden inflationary impacts on their local currency. This highlights its central role in protecting economic interests globally.
In parallel, Circle, another important player in the digital currency space, reported that its US Treasury bond holdings exceeded $8.389 billion as of the end of July. Currently, Tether’s daily trading activity is showing a strong rise of 8.63% in less than 24 hours, according to CoinMarketCap.