Background and Market Impact
In 2025, Tether made a significant move by purchasing $28.2 billion in US Treasuries, becoming the seventh-largest foreign buyer globally. This reflects its strong confidence in dollar-denominated assets and highlights the growing role of stablecoins in the modern financial system.
According to reports, the combined Treasury holdings of Tether and Circle now exceed those held by several major economies, including South Korea and Saudi Arabia. This shift has drawn considerable attention from financial markets and prompted policymakers to reevaluate the impact of crypto assets on traditional financial systems.
Regulatory and Policy Dynamics
US Treasury Secretary Scot Bessent recently stated that stablecoins are instrumental in promoting the dollar globally and absorbing the growing US debt. He forecasts that the sector could expand from $300 billion today to $3 trillion over the next decade.
At the same time, the battle over stablecoin regulation between the banking sector and the crypto industry has intensified. JPMorgan CEO Jamie Dimon and Coinbase CEO Brian Armstrong have taken opposing stances on key provisions, leading to a policy stalemate. This conflict has even affected the positions of Trump supporters, causing divisions within his political base.
Future Outlook
- Stablecoins are expected to play an increasingly important role in the global financial system.
- The direction of regulatory policy will have a profound impact on the industry's development.
- The structure of the US Treasury market may shift as private entities continue to increase their holdings.