Tether Holds More US Treasury Assets Than Several Countries, Totaling 72.5 Billion Dollars

Crypto News– Tether, with its substantial $72.5 billion exposure, has now positioned itself among the top 22 buyers of US Treasury bills, outpacing entire nations like the United Arab Emirates, Mexico, Australia, and Spain.

Tether Holds More US Treasury Assets Than Several Countries, Totaling 72.5 Billion Dollars

This development underscores the growing significance of USDT, particularly in emerging markets, where it serves as a financial lifeline for communities struggling with severe inflation in their national currencies.

This shift in focus gains importance as China reduces its holdings of US Treasury debt, redirecting its attention toward gold, as indicated by Wall Street Silver.

However, Tether recently faced a minor setback as its market capitalization decreased by 1.2% in August, reaching $82.9 billion, according to Bloomberg’s CCData. Despite this decline, Tether maintains a substantial lead over its closest competitor, USDC.

The overall digital asset market, valued at $1 trillion, also experienced a drop in trading volumes, influenced by factors such as rising interest rates, increased regulatory scrutiny, and waning investor enthusiasm due to the prolonged downturn in the crypto market.

Tether Holdings, on the other hand, continues to bolster its treasury reserve holdings to back the circulating USDT tokens, as evidenced in its Q2 attestation, which revealed an $850 million increase, bringing the total to $3.3 billion.

The stablecoin sector is undergoing rapid changes, with Binance’s BUSD facing a gradual phase-out due to heightened regulatory pressure. Meanwhile, Circle’s USDC has encountered challenges, with its market share halving over the past year, although it maintains a stable position at around $26 billion.