Wall Street Journal: Stablecoins saved the U.S. debt crisis! USDT is the top three buyer of short-term U.S. debt

This site (120bTC.coM): The U.S. dollar stable currency USDT now has a market value of more than 112.4 billion U.S. dollars, firmly occupying the leading position. Its issuer Tether also achieved 4.52 billion U.S. dollars in the first quarter of this year. Net profits continued to hit record highs, of which about $1 billion came from profits from holding U.S. Treasury bonds.

According to official reports, in terms of USDT reserves, Tether’s holdings of U.S. Treasury bills (i.e., U.S. government bonds maturing within one year) amounted to US$90.87 billion, accounting for nearly 90% of its total USDT reserves.

CEO: Tether has become the top three buyers of short-term U.S. debt

Today, Tether CEO Paolo Ardoino quoted a WSJ report on X titled "Cryptocurrency can avoid the U.S. debt crisis" The article states that stablecoins backed by the US dollar provide demand for US public debt and emphasizes the important role of USDT: More than 300 million people around the world use USDT as digital dollars, providing important practical value to entire communities in developing countries. This population is underbanked, most remain unbanked, and face high inflation and rapid devaluation of the national currency.

Ardoino added that by using USDT to bring U.S. dollar stability to emerging markets, Tether became one of the top three buyers of U.S. short-term bonds globally and ranked in the top 20 overall ( U.S. bonds with different maturities).

Previously, Glassnode analyst Checkɱate pointed out that USDT absorbs the U.S. government’s national debt to support the U.S. fiscal situation: The U.S. government may have used Tether as a national debt when facing unsustainable financial pressure. source of unlimited demand. As developing countries depreciate their national fiat currencies, they turn to dollarization, and in this context, USDT has clear advantages over currencies such as the peso, bolivar, and lira. Essentially, emerging markets are financing U.S. pensions, health care, military operations, and government profligacy.

Tether is the 19th largest holder of U.S. debt

According to reports in mid-May, the scale of U.S. debt held by Tether is so large that if compared with sovereign countries, according to the recent report of the U.S. Treasury Department According to data released as of March, its holdings of US$90.87 billion have surpassed Germany and ranked 19th in the world. Germany holds US$90.2 billion in US Treasury bonds, and South Korea, ranked 18th, holds approximately US$11.59 billion in US Treasury bonds.

##Japan and China are the largest holders of U.S. Treasury bonds. Japan increased its holdings of U.S. Treasury bonds by US$19.9 billion in March, bringing its holdings to US$1.1878 billion. China 3 In March, it reduced its holdings of U.S. Treasury bonds by US$7.6 billion, bringing its holdings to US$767.4 billion.

With Tether’s U.S. Treasury holdings ranking among the top, former Speaker of the U.S. House of Representatives Paul Ryan recently called for the U.S. to regulate stablecoins. He said that doing so would have two major benefits, including creating trillions of dollars in new demand for U.S. Treasury bonds. , and further integrate the US dollar into the digital digital asset ecosystem.

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