Tether & Circle hold more US Debt than many Nations

Dooh, the Orange guys plans to help finance US debt on the lower end of interest rates via Stablecoins appears to be working.

Think about it in this manner, if you combine Germany, S. Korea's and add in UAE, then total them up Circle and Tether own more US Debt than those three global powerhouses combined. 

How will this manifest itself?

Glad you asked, the Stablecoin market is projected to grow from a paltry $270 Billion in 2025 to $2 Trillion in just 3 short years.  Why do I think this will come to fruition? Currently, Stablecoin transactions already rival Visa's transaction volume with adoption just starting to gain traction with Institutions.

What do Circle & Tether hold?

They have acquired US Debt via US Treasury Bill purchases. Recall US Treasury Bills (T-Bills) are held on the shorter duration side, think less than 1-year. And they can be redeemed with the exchange rate of one token for one dollar ($).

Just how much debt are we talking about?

Let's net is out as I know you have other things to do than read about US debt problems.

• Circle owns a mere $50 Billion in T-bills
• Tether owns a paltry $100 Billion in T-bills
• While S. Korea isn't doing to bad holding roughly $75 Billion in T-Bills

What's the end game?

If I am understand the legalese for the US Stablecoin act, the goal is to finance US debt at the lower end of the Interest rate spectrum vs long end. Bringing down interest rate payments and thus reducing the overall impact of just Interest rate payments on total US debt. Thus collectively working to secure the US dollar’s dominance globally and potentially enforcing US Sanction punitive impacts.  Don't overlook the impact to Wall Street and potentially how they manage risk and more importantly market liquidity!!!

Summary

Have we just witnessed creative finances finest moment? I believe so in a 8-month period we have witnessed an 180-degree turn of the US crypto market and creation of a new Tier 1 Country finance mechanism all via Stablecoins. Remarkable if you ask me and I am not the brightest bulb on the block.  Not sure how the Wall Street titans will feel when they digest the magnitude of this maneuver, this will just be bold enough to work. I.E. cut US debt payments to stave off sinking of the U.S.S. USA.  Fingers and toes crossed folks!

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