{"id":18421,"date":"2025-03-21T10:01:50","date_gmt":"2025-03-21T10:01:50","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=18421"},"modified":"2025-03-21T10:01:50","modified_gmt":"2025-03-21T10:01:50","slug":"the-secret-reason-tether-is-buying-billions-in-bonds-paolo-ardoino-reveals-tether-is-7th-largest-buyer","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=18421","title":{"rendered":"The Secret Reason Tether Is Buying Billions in Bonds: Paolo Ardoino Reveals Tether Is 7th Largest Buyer"},"content":{"rendered":"
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The argument is that if a USD-backed token were absent, crypto <\/span>as a whole<\/span> would be worth far less than the $2.8 trillion it <\/span>is currently valued<\/span> at. <\/span>Without a fluid, highly liquid, multi-chain stablecoin like USDT (Tether)<\/span>, trading and holding crypto would be extremely difficult<\/span>.<\/span><\/p>\n

No one would be willing to risk holding an extremely volatile crypto asset that can move over 10% in a day. Institutions would play it safe, and though the appeal of crypto remains, they would likely double down on solid and relatively stable alternatives like gold\u2014or even more so, US Treasuries.<\/span><\/p>\n

Tether Holds $33 Billion of US Treasuries<\/span><\/h2>\n

From this analysis, it\u2019s easy to see that USDT, the first stablecoin, is a game-changer and will continue to be so, driving the demand of some of the best cryptos to buy in 2025<\/a>. <\/span><\/p>\n

News that Tether, the issuer of USDT, bought $33 billion of US Treasuries in 2024 is <\/span>not only massively bullish but also<\/span> expected from the firm.<\/span> At this level, Tether is the world\u2019s seventh-largest buyer of US bonds, holding more debt than Norway, Hong Kong, and South Korea.<\/span><\/p>\n

In a <\/span>post<\/span><\/a> on X, Paolo Ardoino, the CEO of Tether, said in 2024, Tether trailed the Cayman Islands, which bought over $100 billion of US debt, as well as France, Luxembourg, Singapore, and the UK. During this period, it\u2019s worth noting that India, Ireland, Brazil, Japan, and Mainland China offloaded billions of US Treasuries.<\/span><\/p>\n

Tether issues a stablecoin, USDT, on multiple chains like Ethereum and Tron. Each token, of which <\/span>there are<\/span> over <\/span>$143 billion<\/span><\/a> in circulation as of March 21, 2025, is pegged to the USD. USDT tracks every USD move, and the greenback\u2019s volatility reflects on USDT on-chain.<\/span><\/p>\n

Being<\/span> a token issuer of a coin tracking the USD <\/span>means Tether<\/span> must secure exposure to highly liquid collateral like Treasuries.<\/span> But why is Tether making such a bold move and rapidly accumulating Treasuries?<\/span><\/p>\n

EXPLORE:\u00a0<\/span>10 Coins with High Returns: Crypto Forecast 2025<\/span><\/a><\/strong><\/p>\n

A Strategic Move for Stability and Compliance<\/span><\/h2>\n

By holding $33 billion in Treasuries, Tether earns a decent yield\u2014currently within the 4.25% to 4.50% range\u2014explaining its <\/span>$13 billion profit<\/span><\/a> in 2024. However, the objective seems to be far more than just financial gain.<\/span><\/p>\n

Ardoino and his team are being strategic, aiming <\/span>not only<\/span> to strengthen their market position <\/span>but also to<\/span> comply with the law.<\/span><\/p>\n

As the unofficial \u201c<\/span>distribution network<\/span><\/a>\u201d delivering USD to over 400 million people in emerging markets, as the Tether CEO claims, its role in driving USD dominance is clear. <\/span><\/p>\n

Beyond this, their actions align with proposed stablecoin regulations in the United States, particularly the GENIUS Act.<\/span><\/p>\n

Yesterday, President Trump urged Congress to pass all pending stablecoin regulations, stating, \u201cDollar-backed stablecoins will expand the dominance of the U.S. dollar for years to come.\u201d <\/span><\/p>\n