The volume of reserves held by stablecoin issuers in US Treasury bills reached $80 billion, representing 2% of reserves. This is reported by Cointelegraph, citing a JPMorgan report.
On this measure, Tether Limited, Circle and other issuers have surpassed Berkshire Hathaway of Warren Buffett and money-market funds (excluding government funds).
Data are as of the end of May 2022.
Earlier, Tether Limited and Circle pledged to replace the portion of stablecoin collateral invested in commercial paper with US Treasury bills issued by the U.S. Treasury.
«Market confidence in USDT as a “stablecoin” is gradually weakening, and events of the last few months have accelerated this dynamic», the report says.
Bank analysts cited “excellent transparency and quality of reserve assets of USDC” as the driver of the trend.
Earlier, BDO Italia confirmed a reduction in the volume of commercial paper in USDT’s reserves to $8.5 billion (as of 30 June).
Tether Limited said it remained committed to reducing the volume of commercial paper to $200 million by the end of August, with full removal of these assets by year-end.
Previously, the company’s CTO Paolo Ardoino called the idea of hedge funds shorting USDT “categorically erroneous.”
In mid-May the stablecoin отклонился от привязки к доллару США, testing the $0.94 level, but later returned to parity.
In July Arcane Research analysts forecast that USDC would overtake USDT in market capitalization later in the autumn.
Read ForkLog’s bitcoin news in our Telegram — news, prices and analysis: