Stablecoin Companies Hold More US Treasury Bills than Berkshire Hathaway
Tether and similar stablecoin companies account for 2% of the US Treasury bill market, eclipsing the holdings of Warren Buffet’s investment firm, Berkshire Hathaway.
Tether, Circle, and other stablecoin companies, now hold an estimated $80 billion in US Treasury bills. According to a Financial Times report, stablecoin companies now account for 2% of the US Treasury market, eclipsing the amount held by ‘Warren Buffett’s investment behemoth Berkshire Hathaway.’
The report by the financial times concluded that stablecoin companies holding 2% of the US Treasury bills is a sign of their expansion into the traditional financial markets. Furthermore, stablecoin companies are using US Treasury bills as a cash equivalent on their balance sheets which could result in the growth of such financial instruments ‘should stablecoins become a form of digital payment.’
Tether Decreases Commercial Paper Holdings by 58%. Circle Commits to Monthly USDC Reserve Reports.
The fact that stablecoin companies hold more US Treasury bills than Warren Buffet’s Berkshire Hathaway indicates that these entities are determined to increase confidence in their reserves after May’s devastating UST collapse.
In a recent quarterly attestation completed by auditing firm BDO Italia, Tether announced that it had decreased its commercial paper holdings by more than 58%, to $8.5 billion from $20 billion in the previous quarter.
In addition, Tether’s reserves include US Treasury bills worth $28.8B, money market funds worth $6.8B, cash and bank deposits worth $5.4B, reverse repurchase agreements worth $3B, corporate bonds worth $3.5B, secured loans worth $4.5B and other investments worth $5.5B.
Similarly, Circle, the company behind USDC, has remained committed to issuing monthly reports of its USDC reserves. As of June 30th, USDC was backed by $42.1B in US Treasuries and $13.5B in cash held at regulated financial institutions.
Stablecoin Marketcap has Now Reached $153.4 Billion.
Concerning overall growth, data from CoinGecko shows that the total market capitalisation of stablecoins has hit $153.48 billion, with USDT, USDC, and Binance USD leading the rest with market caps of $67.6 billion, $52.3 billion, and $19 billion, respectively.
~ By John P. Njui ~
