tldr; Tether, the issuer of the USDT stablecoin, has significantly increased its investment in U.S. Treasury bonds, now holding around $98 billion. This positions Tether among the largest global holders of these instruments, comparable to countries like Germany and South Korea. CEO Paolo Ardoino highlights this strategy as enhancing Tether’s relationship with the U.S. government and contributing to financial stability. The investments, initiated in 2022, have generated substantial returns and reinforce USDT’s backing, ensuring liquidity and stability.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
HSuke on
Tether runs such a low-risk, insanely-profitable business
* Take people’s dollars
* Convert into Treasuries for free interest without risk (as long as the US treasury doesn’t default)
If it weren’t for government regulations, I’m sure the big banks would’ve loved to get a cut in on this action. Instead, now a tiny company of 100 employees controls this much USD from the middle of a tiny foreign country.
ChainRing32 on
TradFi banks must be salivating. Stablecoin issuers have the most amazing business model.
3 Comments
tldr; Tether, the issuer of the USDT stablecoin, has significantly increased its investment in U.S. Treasury bonds, now holding around $98 billion. This positions Tether among the largest global holders of these instruments, comparable to countries like Germany and South Korea. CEO Paolo Ardoino highlights this strategy as enhancing Tether’s relationship with the U.S. government and contributing to financial stability. The investments, initiated in 2022, have generated substantial returns and reinforce USDT’s backing, ensuring liquidity and stability.
*This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.
Tether runs such a low-risk, insanely-profitable business
* Take people’s dollars
* Convert into Treasuries for free interest without risk (as long as the US treasury doesn’t default)
If it weren’t for government regulations, I’m sure the big banks would’ve loved to get a cut in on this action. Instead, now a tiny company of 100 employees controls this much USD from the middle of a tiny foreign country.
TradFi banks must be salivating. Stablecoin issuers have the most amazing business model.