Tether becomes one of the largest investors in US government debt

The company invested a total of $53 billion in the national debt

23.05.2023 - 07:25

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3 min

What’s new? Tether, the issuer of the USDT stablecoin, has ranked among the top US government debt investors, surpassing countries such as Thailand, the Philippines, Israel, and Kuwait. In May, Tether built up its share of US Treasury bills to a new high of $53 billion, or 64% of its reserves. The company’s advisor, Gabor Gurbacs, made the announcement on Twitter.

If Tether was a country, it would be the 25th largest holder of U.S. treasuries. It is in the U.S. national interest to responsibly distribute USD-backed stablecoins, especially in Emerging Markets. The U.S. should thank Tether for buying when others are ditching the Dollar. pic.twitter.com/tle3cQDGPN
— Gabor Gurbacs (@gaborgurbacs) May 22, 2023

Tether is the largest issuer of stablecoins in the crypto market. Centralized USDT, which is pegged to the U.S. dollar, ranks third in the overall cryptocurrency ranking with a capitalization of $82,98 billion as of May 23.

What else is known? According to Gurbacs, Tether is the 25th largest holder of US Treasury bills. The advisor believes that the responsible distribution of dollar-backed stablecoins, especially in emerging markets, is in the US national interest, and authorities “should thank Tether for buying when others are ditching the Dollar.”

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In Q1, Tether cut its bank deposits by 90%, from $5,3 billion to $0,481 billion, to reduce counterparty risk. The company also intends to regularly invest up to 15% of its profits in bitcoin to strengthen and diversify its reserves.

In addition, Circle adjusted the composition of its USDC stablecoin reserves in May, replacing short-term US Treasury bonds maturing after early June because of the risk of default. USDC is the second-largest centralized stablecoin with a capitalization of $29,43 billion.

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