The issuer of the stablecoin USDT, Tether, has become the 22nd-largest purchaser of U.S. Treasuries, with reserves of $72.5 billion.
«USDT — the most-used ‘stablecoin’ in the world with a strong emphasis on developing markets. For many, the asset is a lifeline, enabling people to protect themselves and their families from the rampant inflation of their national currencies», said Paolo Ardoino, Tether’s chief technology officer.
A company spokesperson backed his remarks with news of China reducing its influence on U.S. Treasuries. According to a post by Wall Street Silver, China’s holdings in this area fell by nearly $481 billion.
At the same time, Tether, by the amount of U.S. Treasuries held, surpasses even the UAE, Mexico, Australia and Spain.
USDT remains the largest stablecoin in the market. According to CoinGecko, its market capitalization stands at $82.8 billion.
Earlier, Tether reported $850 million in net income in the second quarter. According to the document, 85% of USDT’s collateral consists of cash and cash equivalents.
In May, Ardoino stated that high profitability of the issuer provides the opportunity to explore new business directions.
Subsequently, it emerged that Tether invested $1 billion in a Bitcoin mining project in El Salvador.
Kaiko analysts pointed out a small but persistent deviation of USDT from the U.S. dollar in early August. Some experts called the situation a ’cause for concern’.