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The Secret Reason Tether Is Buying Billions in Bonds: Paolo Ardoino Reveals Tether Is 7th Largest Buyer
- Without stablecoins like USDT, the $2.8 trillion crypto market would be significantly devalued.
- Tether's purchase of $33 billion in US Treasuries in 2024 makes it the 7th largest buyer of US bonds worldwide.
- The move aligns with potential US stablecoin regulations like the GENIUS Act, requiring collateral in US debt.
- Tether aims for financial stability, compliance, and market position through strategic Treasury accumulation.
- Tether's CEO, Paolo Ardoino, reveals the intention to comply with regulations and strengthen the company's foothold in the financial system.
- Tether's focus on compliance includes hiring a CFO to prepare for a full financial audit.
- USDC poses a threat to USDT's dominance if Tether fails to comply with US laws and regulations.
- The GENIUS Act signifies a potential requirement for stablecoin issuers to hold US debt as collateral for tokens.
- Tether's purchase of Treasuries not only aims for financial gain but also to uphold industry standards and regulatory engagement.
- The crypto market's dependence on stablecoins like USDT highlights the importance of compliance and transparency for stablecoin issuers.
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