Tether has emerged as one of the top buyers globally of US Treasury bills, with a commanding exposure of $72.5 billion, according to a recent post by Paolo Ardoino, CTO of Tether.
This development places the USDT stablecoin issuer in the global top 22, ranking above nations like the “United Arab Emirates, Mexico, Australia, and Spain.”
As Paolo Ardoino reported, this development underscores the growing relevance of USDT in emerging markets, “providing a lifeline for communities grappling with rampant inflation in their national currencies.” Ardoino’s assertion gains weight against China’s decreasing hold on US Treasury debt, ostensibly shifting its focus towards gold as indicated by Wall Street Silver.
This news comes on the heels of Tether’s recent market shakeup. As CryptoSlate reported on Aug. 17, Tether’s USDT had experienced a hiccup in its stability, deviating from its $1 peg amid a market downturn that wiped nearly $100 billion from the crypto market.
Despite this brief instability, Tether remains the largest stablecoin by market cap, controlling over 60% of the market. Even though USDT value wobbled during the market carnage, it regained ground, with its trading volume exceeding $50 billion in the past 24 hours, six times higher than its closest competitor, USD Coin (USDC).
Interestingly, crypto traders preferred other stablecoins besides USDT during this market turmoil, most notably DAI and USDC. According to data from 3Pool’s dashboard—Curve’s largest liquidity pool—USDT accounted for nearly 50% of the reserve, while USDC and DAI made up the balance. This indicates a possible trend among traders who sought refuge from the market volatility by selling USDT for DAI and USDC.
As the global economic landscape shifts and the crypto market keeps evolving, Tether’s exposure in US Treasury bills and its dominance in the stablecoin sphere paints a compelling picture of cryptocurrencies’ increasing role in global finance.
The post Tether now a top global buyer of US Treasury bills amid market turmoil appeared first on CryptoSlate.
Credit: Source link
