Tether Now Holds More US Treasuries Than Germany
Tether now holds more US Treasuries than Germany, highlighting its growing influence in digital assets and prompting calls for stablecoin regulation.
Tether, the largest stablecoin issuer, reported a $4.52 billion profit in the first quarter. As of March 31, Tether’s financials showed $91 billion in direct and indirect US Treasury bill holdings, along with $5.4 billion in Bitcoin. This makes Tether the 19th largest holder of US Treasuries, positioned between South Korea and Germany.
The global Treasury landscape is shifting. China has reduced its Treasury holdings from $869 billion to $767 billion over the past year. Japan, the largest holder with around $1.2 trillion, might also sell due to a weakening yen. This change highlights the growing impact of Tether and other stablecoins in the global financial scene.
Former House Speaker Paul Ryan has called for stablecoin regulation. In a video shared by Radar on X, Ryan emphasized the need for regulation due to increased demand for Treasuries and the stronger presence of the US dollar in the digital asset market. As stablecoins’ Treasury holdings grow, their potential to support the US dollar also increases.
Tether’s large Treasury holdings underscore its role in supporting the US dollar’s digital strength. Tether’s strategy reflects a trend where digital assets are becoming key to traditional finance. Its investments in US Treasuries not only stabilize its digital tokens but also boost demand for US government debt.
The importance of stablecoins like Tether is clear in the global financial landscape. By backing their tokens with stable assets like US Treasuries, stablecoins attract investors and users in the digital space. This stability builds trust and encourages adoption of digital currencies.
Paul Ryan’s call for regulation highlights the need for a solid framework to manage the influence of stablecoins. Proper regulation can ensure that stablecoins operate transparently and securely, protecting investors and maintaining financial stability. As stablecoins integrate into traditional finance, oversight is essential to prevent risks and misuse.
As Tether grows its Treasury holdings, its influence on the US financial system and the global digital asset market will likely increase. Tether’s investments highlight the relationship between stablecoins and traditional financial instruments, suggesting stablecoins could play a major role in the future of finance.
