Analysts at investment bank JPMorgan found that, as of May, stablecoin providers collectively held more than $80 billion in short-term US government bills.
Treasury bills are debt instruments that are commonly held by companies as a cash equivalent on corporate balance sheets. Promissory notes are considered low-risk assets, unlike shares of commercial companies.
The world’s largest stablecoin issuers Tether (USDT) and USD Coin (USDC), responding to criticism over the form of providing liquidity to their assets, have promised to buy US Treasury bills, reducing reliance on commercial paper. For example, Tether has assured that it has abandoned the shares of Chinese companies to hold USDT stablecoin reserves, and has also significantly reduced the share of shares of companies from other countries.
According to a number of cryptocurrency watchers, USDT now has a market capitalization of around $67.6 billion, while the market value of USDC is close to $52.4 billion. At the same time, the volume of holdings of US Treasury bills at the two largest suppliers of stablecoins became more than that of Berkshire Hathaway, the investment giant of billionaire Warren Buffett (Warren Buffett).
“Market confidence in stablecoins is increasing as the transparency and quality of reserve assets grows, and the events of the past few months have only accelerated this momentum,” JPMorgan said in a report.
Recently, Tether announced a partnership with BDO Italia to conduct monthly attestation and audit of financial statements.
Source: Bits
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