How the US government benefits indirectly from the crypto market : 

No, I’m not talking about bitcoin seizures! 😆 It is something a little more subtle and not as obvious ! 🤔

I’m talking about Tether ( USDT ) the largest stablecoin by market cap. Tether is a bridge between fiat and crypto facilitating liquidity and stability.

USDT is backed 1:1 by reserves including cash, cash equivalents, and a significant amount of short term US Treasury bills. 

Tether reported a profit of $5.2B for the first half of 2024, a large portion from its holding US Treasury securities. It is predicted that Tether could become the largest holder of short term US Treasury securities within the year. 👀

Tether’s purchases of Treasury bills provide critical support for the US debt market at a time when foreign investor interest is declining in T bills. 

Rising bitcoin price = More investor interest = More USDT minted = More demand for T bills = US fiscal cushion among rising debt.

Hodler exploring web3. Solana airdrop farmer, bitcoin solo miner, Helium network miner, and Medium blogger. 🎭🎭🎭

Good morning Kelsey.  Miss you around here ! 🥺🎭🎭🎭