Tether, a leading provider of stablecoins, has announced a strong profit of $4.52 billion in the first quarter of this year. As of March 31, the company held a substantial portfolio of $91 billion in US Treasury bonds and $5.4 billion in Bitcoin. These figures place Tether in the 19th position among the largest global holders of US Treasury bonds, surpassing Germany and trailing just behind South Korea.
The dynamics of the global bond market have experienced significant shifts. China reduced its holdings from $869 billion to $767 billion last year, while Japan, which currently holds the largest share at approximately $1.2 trillion, is also considering reducing its reserves due to the devaluation of the yen. These transformations highlight the increasing influence of stablecoins like Tether on the global financial landscape.
Paul Ryan, the former Speaker of the US House of Representatives, has emphasized the necessity of regulating stablecoins. In a video released by Radar on
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Tether’s substantial investments in US Treasury bonds demonstrate its crucial role in upholding the stability of the digital dollar. The company’s approach reflects a trend where digital assets are becoming increasingly central to the traditional financial ecosystem, not only stabilizing their own tokens but also driving demand for US government debt.
Ryan’s call for appropriate regulation reinforces the need for a comprehensive regulatory framework for stablecoins. This framework would ensure transparent and secure operations, protect investors, and maintain global financial stability.
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The views and opinions expressed by the author or anyone mentioned in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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