When Tether Went Bond Shopping: A $33 Billion Adventure! 💰

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In a turn of events that would make even the most seasoned market watchers raise an eyebrow, Tether has taken the plunge and splashed out over $33 billion on Treasury bonds last year. This audacious move catapults Tether into the esteemed position of the seventh-largest buyer of US bonds, outpacing the likes of Canada, Mexico, and Germany. Who knew bonds could be so fashionable? 🎩

In a speech that could only be described as a masterclass in political bravado, President Trump declared that stablecoins are set to become the darlings of dollar dominance on the global stage. By acquiring these bonds, Tether might just be securing a partnership that would make even the most ambitious social climber blush. 🤝

Why is Tether Buying US Treasury Bonds?

Ah, Tether, the world’s largest stablecoin issuer, finds itself at a rather opportune crossroads. At the Digital Assets Summit earlier today, President Trump hinted at some rather grand plans for stablecoin policies in the US. One can only imagine the tea and crumpets that were served during these discussions! ☕

It appears that Tether has become one of the globe’s largest purchasers of US Treasury bonds, which is quite the feather in its cap:

“Tether was the 7th largest buyer of US Treasuries in 2024, surpassing entire nations. Tether has managed to bring the US dollar to over 400 million people, primarily in emerging markets and developing countries. Without a doubt, Tether has constructed the most impressive distribution network for the US Dollar,” proclaimed Tether CEO Paolo Ardoino in a flurry of social media posts. 📱

This bold acquisition could potentially bolster USDT’s compliance efforts with the upcoming stablecoin regulations. The proposed GENIUS Act, currently awaiting congressional approval, demands that stablecoin issuers hold reserve assets in the US, denominated in US treasury. Quite the clever ruse, if I do say so! 🧠

Thus, this purchase could allow Tether to comply with the forthcoming US regulations, unlike the EU’s MiCA, which seems to be a bit of a damp squib. 💨

“Insane. Tether has become an essential partner to the United States in less than a decade,” quipped Anthony Pompliano, likely while sipping a fine sherry. 🍷

In his speech today, President Trump didn’t exactly roll out the red carpet for future stablecoin policy, but he did assert that dollar-backed stablecoins will “expand the dominance of the US dollar” for years to come. A bold claim, indeed! 🦅

If the US government decides to take the reins of the stablecoin market, Tether could very well be the golden ticket in Trump’s grand partnership scheme.

Could Tether and Trump Drive USD Dominance?

All the proposed stablecoin regulations in the US come with a rather clear stipulation: issuers must submit to third-party audits. Tether, however, has never been one for such formalities, although its new CFO seems to be warming up to the idea. How very progressive! 📈

This little hiccup has already prompted Coinbase to declare it would remove Tether’s products if asked, much like a gentleman being asked to leave a soirée after a bit too much port. 🍷

However, Tether may just sidestep these issues by purchasing Treasury bonds. Among other requirements, the GENIUS Act insists that stablecoin issuers hold a significant portion of their reserves in US Treasuries. Quite the clever maneuver, if I may say so! 🎩

It was previously speculated that Tether might need to part with its Bitcoin due to this regulation, but the fact that the company has been on a bond-buying spree has certainly changed the narrative. 📉

“Should Congress pass the GENIUS Act, the regulatory clarity might also attract traditional banking firms into the stablecoin ecosystem, fueling healthy competition. The stablecoin market could potentially hit $3 trillion in the next 5 years, a sign

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2025-03-21 01:53