Previously a niche tool for crypto, stablecoins are progressively becoming a fixture of mainstream finance. Circle and Tether now have larger US debt portfolios than several sovereign nations.
The recent passage of the GENIUS Act legitimized stablecoin use, supercharging interest from banks, payment processors, and Fortune 500 companies.
Circle and Tether Quietly Amass More US Debt Than Germany, South Korea, and the UAE
Stablecoins are digital tokens pegged to the US dollar and backed by reserves, often in US Treasury bills (T-bills). The structure ensures that one token can reliably be redeemed for one dollar.
This stability makes them attractive for cross-border payments and as a settlement layer for the crypto ecosystem.
Two leading stablecoin issuers, Tether (USDT) and Circle (USDC), hold more US government debt than several major national economies. This includes Germany, South Korea, and the United Arab Emirates.
Tether, the…
