The Hidden Motive Behind Tether’s Purchase of Billions in Bonds: Paolo Ardoino Discloses Tether as the 7th Largest Acquirer
The claim suggests that in the absence of a USD-backed crypto token, the entire crypto crypto market would have a valuation significantly lower than its current worth of $2.8 trillion. Without a robust, high-liquidity, multi-chain stablecoin such as USDT (Tether), engaging in trading or holding crypto assets would become exceedingly challenging.
No investor would want to gamble with a highly volatile crypto holding that might fluctuate by more than 10% within a single day. Institutions would likely adopt a conservative approach, and while there’s still interest in crypto, they would probably pivot towards more reliable and comparatively stable assets like gold—or even more likely, US Treasuries.
Tether Holds $33 Billion of US Treasuries
This analysis clearly shows that USDT, as the first stablecoin, is transformative and is expected to continue influencing the market demand for some of the top cryptocurrencies to acquire in 2025.
The news that Tether, the provider of USDT, acquired $33 billion in US Treasuries in 2024 is not only incredibly positive but also anticipated from the company. At this scale, Tether ranks as the seventh-largest holder of US bonds globally, possessing more debt than Norway, Hong Kong, and South Korea.
In a tweet on X, Paolo Ardoino, CEO of Tether, remarked that in 2024, Tether lagged behind the Cayman Islands, which purchased over $100 billion in US debt, as well as France, Luxembourg, Singapore, and the UK. During this timeframe, it’s noteworthy that countries like India, Ireland, Brazil, Japan, and Mainland China sold off billions in US Treasuries.
Tether issues a stablecoin, USDT, across multiple chains including Ethereum and Tron. Each coin, of which there are over $143 billion in circulation as of March 21, 2025, is fixed to the USD. USDT closely follows movements of the USD, and fluctuations in the dollar directly impact USDT on-chain.
As a coin issuer of a coin that mirrors the USD means Tether must ensure it has access to highly liquid collateral such as Treasuries. But what is driving Tether to make such a significant investment in Treasuries?
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A Strategic Move for Stability and Crypto law
By holding $33 billion in Treasuries, Tether enjoys a reasonable yield—currently ranging from 4.25% to 4.50%—which sheds light on its $13 billion profit anticipated in 2024. However, the goal appears to extend well beyond mere financial profit.
Ardoino and his team are tactically positioning themselves to not only enhance their crypto market share but also to adhere to legal standards.
As the unofficial “distribution protocol” facilitating USD to over 400 million individuals in developing countries, as claimed by Tether’s CEO, its influence on USD supremacy is apparent.
Moreover, their strategies align with forthcoming securecoin regulations in the United States, particularly the GENIUS Act.
Recently, President Trump encouraged Congress to pass all outstanding stablecoin regulations, asserting that “Dollar-backed stablecoins will enhance the dominance of the U.S. dollar for many years to come.”
The proliferation of stablecoins tied to the USD enhances the greenback’s standing in global markets, and consequently, attracts more investment into the most promising presales available today.
Under the GENIUS Act, stablecoin issuers would be required to possess U.S. debt as collateral supporting all circulating tokens.
By proactively acquiring billions in U.S. debt, Tether is strategically preparing to meet potential future regulations while reinforcing its presence in the U.S. financial landscape.
Nevertheless, although their intent to gather Treasuries is clear, Tether has historically resisted third-party audits—a crucial stipulation for compliance under the GENIUS Act.
Tether Preparing For A Full Financial Audit
In a bid to overcome this problematic past and possibly lead to a new phase of transparency, Tether appointed Simon McWilliams as its CFO ahead of a comprehensive audit that will take place. The stablecoin provider labeled this as “a vital step towards elevating industry standards and enhancing regulatory strategic alliance.”
An audit is essential now that financial institutions are closely observing the stablecoin sector and Ripple’s RLUSD is making noticeable progress. RLUSD, which targets institutional investors exclusively, adheres to New York financial regulations.
This just in…we have final approval from @NYDFS for $RLUSD! Trading platform and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from @Ripple first.
— Brad Garlinghouse (@bgarlinghouse) December 10, 2024
If Tether doesn’t align with U.S. regulations, it may be surpassed by the more compliant USDC, which continues to grow rapidly, especially in the United States and Europe.
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Tether Bought $33 Billion of Treasuries In 2024: Will It Comply With the GENIUS Act?
- Crypto market Impact: Tether acquired $33 billion of U.S. Treasuries in 2024. USDT supports the $2.8 trillion market and is the largest stablecoin by market cap
- Regulatory Play: Early debt acquisitions put Tether in a favorable position for GENIUS Act crypto law, despite price ceiling to audits
- Competition: RLUSD and USDC pose a threat to USDT’s trading market supremacy if it falters in meeting U.S. legal standards
The post The Secret Reason Tether Is Buying Billions in Bonds: Paolo Ardoino Reveals Tether Is 7th Largest Buyer appeared first on 99Bitcoins.
