Bitcoin

USDC

<h2 id="quick-take">Quick Take</h2> 
With the aggregate valuation of the top five stablecoins – USDT, USDC, BUSD, DAI, and Tron – currently amounting to approximately $120 billion, stablecoins have become major holders of US Treasuries. 
Following <a href="https://cryptoslate.com/tether-usdt-cash-equivalents-have-increased-to-85-company-reveals/">concerns</a> over the “cash and cash equivalents” of stablecoin reserves earlier in the current Bitcoin cycle, stablecoin issuers like Tether began <a href="https://cryptoslate.com/tether-reduces-commercial-paper-exposure-to-below-50m-treasury-bills-rise-to-58-1-of-reserve/">migrating</a> to US Treasuries to reduce the risk exposure of reserves. 
Tether (USDT) leads the pack with a circulating supply of $83.5 billion, accounting for about 70% of the stablecoin market. Interestingly, this dominance has been on an upward trajectory, while the influence of USDC witnessed a decline from 38% to 21% within 16 months. 
<figure id="attachment_366007" aria-describedby="caption-attachment-366007" style="width: 100%" class="wp-caption aligncenter">
 <img class="wp-image-366007 size-full" src="https://cryptoslate.com/wp-content/uploads/2023/10/AS.png" alt="Aggregate Supply of Stablecoins: (Source: Glassnode)" width="1800" height="1013" srcset="https://cryptoslate.com/wp-content/uploads/2023/10/AS.png 1800w, https://cryptoslate.com/wp-content/uploads/2023/10/AS-300x169.png 300w, https://cryptoslate.com/wp-content/uploads/2023/10/AS-1024x576.png 1024w, https://cryptoslate.com/wp-content/uploads/2023/10/AS-768x432.png 768w, https://cryptoslate.com/wp-content/uploads/2023/10/AS-1536x864.png 1536w" sizes="(max-width: 1800px) 100vw, 1800px">
 <figcaption id="caption-attachment-366007" class="wp-caption-text">
 Aggregate Supply of Stablecoins: (Source: Glassnode)
 </figcaption>
</figure> 
This high valuation places stablecoins as the 16th largest sovereign holder of U.S. treasuries, according to <a href="https://twitter.com/WClementeIII/status/1714348160011645391?s=20">Will Clemente’s</a> analysis using The Block’s data. Clemente suggests that as demand for these digital currencies escalates, they could become even more significant. 
This evolving trend aligns with <a href="https://cryptoslate.com/insights/shifting-sands-japan-and-chinas-decreasing-holdings-in-u-s-treasury-securities/">CryptoSlate’s</a> analysis conducted in July, which revealed that Japan and China, the two largest foreign holders of U.S. treasuries, have been reducing their holdings. Consequently, if stablecoin demand continues to surge, they could constitute a more critical segment of U.S. treasury holders, accentuating their influence in the global financial market. 
<figure style="width: 100%" class="wp-caption alignnone">
 <img src="https://pbs.twimg.com/media/F8qVfoYXAAAvM1e?format=png&amp;name=900x900" alt="Stablecoins: (Source: The Block)" width="900" height="506">
 <figcaption class="wp-caption-text">
 Stablecoins: (Source: The Block)
 </figcaption>
</figure> 
The post <a rel="nofollow" href="https://cryptoslate.com/insights/stablecoins-surge-to-16th-largest-holder-of-u-s-treasuries-according-to-will-clemente/">Stablecoin companies now 16th largest holder of U.S. treasuries globally – report</a> appeared first on <a rel="nofollow" href="https://cryptoslate.com">CryptoSlate</a>.

Stablecoin companies now 16th largest holder of U.S. treasuries globally – report

Table of Contents

CryptoSlate

Other articles published on Oct 18, 2023

Twitter’s $1 fee faces crypto criticism amid rising scam bots

CRM Stock Holds $200; Is Correction Over for Salesforce Stock?

SUI Token Plummets to All-Time Low Amid Manipulation Controversy

Standard Chartered to launch crypto services by early 2024

Crypto Buzz: GBTC Awaits SEC Decision on Bitcoin ETF Transformation

SAVA Stock Defending $12 Level; is SAVA Stock Ready to Flip Trend

Join our free newsletter for daily crypto updates!