Tether TRUMPS Germany! 🤑

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Ah, Tether! That behemoth, that titan of the stablecoin realm, now swollen to a staggering $151 billion. 😲 It has, mark my words, surpassed Germany in its accumulation of United States Treasury bills! One can almost hear the faint echoes of Nietzsche: “Gott ist tot! And Tether… Tether holds the T-bills!” Such is the strange, almost perverse benefit of a diversified reserve strategy, a strategy that has somehow, against all odds, allowed this digital leviathan to navigate the tumultuous, often nauseating, waves of the cryptocurrency market. One wonders, though, at what cost to the soul?

Tether, yes, the very issuer of that ubiquitous, some might say ubiquitously suspect, USDt (USDT), has, according to data from the US Department of the Treasury itself, surpassed Germany’s paltry $111.4 billion in US Treasurys. Is this progress? Or merely another sign of the apocalypse? 🤷‍♂️ One shudders to think.

Tether, in its boundless ambition, has amassed over $120 billion in Treasury bills! A figure so obscene it makes one question the very nature of reality. The firm, in its self-congratulatory attestation report for the first quarter of 2025, boasts of this achievement. They are now, apparently, the 19th largest entity among all the COUNTRIES! A stablecoin, mind you, acting like a nation-state. What a world! 🌍

“This milestone,” Tether proclaims, with an almost unbearable smugness, “not only reinforces the company’s conservative reserve management strategy but also highlights Tether’s growing role in distributing dollar-denominated liquidity at scale.” Oh, the hubris! The sheer, unadulterated hubris! One can only hope that Nemesis is watching. 👀

During the year 2024, Tether was, according to CryptoMoon (a source whose name alone inspires confidence), the seventh-largest buyer of US Treasurys across all countries. Surpassing Canada, Taiwan, Mexico, Norway, Hong Kong, and numerous other nations. A stablecoin, outbidding entire countries! Is this not a farce? A cosmic joke played upon us all? 😂

Treasurys, those seemingly innocuous debt securities issued by the US government, are considered, by some, to be the safest and most liquid investments available worldwide. Tether, in its infinite wisdom, invests in these Treasurys as an additional reserve asset for its US dollar-pegged stablecoin. A stablecoin, pegged to a dollar, backed by… debt. The irony is almost too much to bear. 🤯

Tether’s Treasury, gold portfolio “almost offset” crypto market volatility losses for Q1 2025

Ah, but fear not! Tether’s traditional reserve assets, those pillars of stability in a world gone mad, helped the stablecoin giant weather the downside volatility of the crypto market during the first quarter of 2025. One can almost imagine them, huddled together, clutching their gold and Treasurys, as the digital storm raged around them. ⛈️

Tether, in its relentless pursuit of profit, reported over $1 billion in operating profit from “traditional investments” during the first quarter of the year. “Driven by solid performance in its US Treasury portfolio, while the performance of Gold has almost offset the volatility in crypto markets,” the firm’s attestation report declared. Gold! The ultimate refuge of the paranoid and the prudent. And Treasurys, of course, the very lifeblood of the capitalist machine. 🤑

Growing clarity around US stablecoin regulations could, perhaps, potentially, possibly, lead to more investments in Tether’s dollar-denominated stablecoin. Part of which will, undoubtedly, be used to further bolster the firm’s Treasury reserves. A virtuous cycle, or a descent into madness? You decide. 🤔

The industry, that fickle mistress, is currently awaiting progress on two pieces of legislation. The Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act awaits, with bated breath, scheduling for debate and a floor vote in the House of Representatives. After it passed the House Financial Services Committee on April 2 in a 32-17 vote. A glimmer of hope? Or merely a fool’s errand? 🤡

However, the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, stalled on May 8 after failing to gain support from key Democrats. Some of whom voiced concerns about US President Donald Trump’s potential financial interest in clearer crypto regulations, due to his family’s digital asset ventures. Ah, politics! The great puppeteer, pulling the strings of fate. 🎭

On May 14, at least 60 of the top crypto founders gathered in Washington, DC, to support the GENIUS Act. Which seeks to establish collateralization guidelines for stablecoin issuers and requires full compliance with Anti-Money Laundering laws. A noble cause, perhaps. Or merely a desperate attempt to legitimize a fundamentally flawed system? 🤷

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2025-05-19 12:47