The Weekly Peg: The Lugano download (3/3)

What we learned at ‘Plan B’, including how Tether plans to transform itself into a 'stable company' and why it's steamrolling into gold, land, and commodity-related activities.

Tether news:

Stablecoins can boost US dollar hegemony, Tether CEO says.

TLDR:

• CEO Paolo Ardoino on how and why Tether, the world’s largest stablecoin issuer, has become an unexpected ally of the U.S. Treasury.

• Facts and stats: Tether now holds about $181 billion in reserves of which $135 billion is in U.S. Treasuries, a number that Ardoino claimed helps to offset what China has sold over the past three years.*

• Ardoino told us Tether “acts as a compensation force” for the U.S. Treasury market, helping to sustain U.S. dollar dominance by spreading ownership of government debt among millions of stablecoin users instead of single sovereign holders.

• Tether has built a capital cushion exceeding $20 billion, with which it has accumulated over 100 tons worth of gold holdings.**

• Ardoino isn’t worried that falling rates will harm the firm, saying such a shift would instead “kill” smaller competitors whose models depend on yield.

• Tether is working with over 250 law enforcement agencies across 50 countries, including the FBI and U.S. Justice Department, to bolster its legitimacy.