Warren Buffet overtaken by stablecoins in the bond market? The struggle continues

Circle and Tether market leaders – The stablecoins have become essential in the crypto ecosystem. Very useful to save your crypto capital and spend the hot summer in the shadow of volatility (also works during crypto winter). Circle (USDC) and Tether (USDT) are the two largest issuers of dollar stablecoins on the market. According to the Financial Times, the two companies have more US Treasury bonds than Berkshire Hattaway, Warren Buffett’s company.

The cumulative valuation of Tether and Circle almost reaches the $120 billion at the time of writing these lines. According to this report, between them they had $80 billion in treasury bills last May. That is to say that they “hold” part of the debt of the United States, of which they are in fact creditors. Funny.

The leaders of the stablecoin sector are obviously important players in the US debt market. They represented there until 2% of it, overtaking Berkshire Hattaway. These financial assets are considered as “ risk off“.

The financial strength of Tether and the opacity around its reserves is regularly questioned. It is clear that the company is diversifying and has “traditional” financial assets. The company struggles to make public its “secret sauce“, even if it seems to take the path of transparency. Tether has announced a partnership with a top 5 audit firm.

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