Core Viewpoint - The article discusses the impact of Tether (USDt), the largest stablecoin, on the US dollar system, suggesting that while it creates new demand for US Treasury bonds, it may only delay the inevitable decline of the dollar rather than save it [1][15]. Group 1: Tether's Financial Performance - Tether is highlighted as potentially the most profitable company in business history, generating $13.7 billion in profit last year with only 165 employees, resulting in over $83 million in profit per employee [2][5]. - The company's unique business model provides instant, global access to digital dollars for anyone with a smartphone, contributing to its success [5]. Group 2: User Growth and Market Impact - Tether claims to have over 400 million users, adding 30 million each quarter, with significant popularity in emerging markets like Argentina, Venezuela, and Turkey, where local currencies are depreciating [8][9]. - The article compares Tether to a retail version of the offshore dollar, noting that while the European dollar market is significantly larger, Tether is rapidly growing and providing similar functions for retail and small institutional investors [8][9]. Group 3: Support for US Treasury Market - Tether has become the seventh-largest holder of US Treasury bonds, surpassing entire countries like Canada and Switzerland, by investing its reserves in short-term US debt [10]. - The company has established a partnership with Cantor Fitzgerald to manage large-scale redemptions, ensuring liquidity and stability during high withdrawal demands [11][12]. Group 4: Limitations and Future Outlook - Despite Tether's contributions to the demand for US Treasury bonds, the article warns that this support is limited compared to the US government's annual debt needs of nearly $9 trillion [14]. - The author concludes that while Tether may provide temporary stability for the dollar, it does not alter the long-term trajectory of the dollar's decline due to unsustainable government spending [15].

RT Paolo Ardoino 🤖 (@paoloardoino). @MessariCrypto showing USDt is the most liquid stablecoin with 2.8x more pairs and 3.4x more market depth than the next largest stablecoin 🦾 ...

Core Insights - Stablecoins are gaining significant attention globally, with a rapidly developing regulatory framework, highlighting their potential as a bridge between traditional finance and digital assets [1][2][4] - The demand for stablecoins is increasing, particularly in countries experiencing rapid currency devaluation, as they offer a means for residents to lock in value and facilitate transactions [2][3] - The rise of stablecoins could lead to a further dollarization of the global monetary system, enhancing the influence and power of the underlying currencies and assets [2][3] Definition and Functionality - Stablecoins are digital currencies pegged to real-world assets, such as the US dollar, providing stability compared to volatile cryptocurrencies like Bitcoin [1][4] - They serve as a payment tool utilizing blockchain technology, allowing for quick transactions in the digital realm while minimizing exchange rate fluctuations and transaction fees [1][4] Market Dynamics - The market for stablecoins is expanding, with Tether's USDt holding a 66% market share and a valuation of approximately $150 billion as of April 2025 [5] - Major tech companies, including Apple, Google, and Uber, are exploring the integration of stablecoins into their payment systems, indicating a growing interest in this financial innovation [6][7] Regulatory Landscape - The issuance of stablecoins is primarily conducted by private companies, with ongoing discussions about regulatory frameworks to ensure transparency and proper reserves [4][5] - The Hong Kong Monetary Authority has established a licensing system for stablecoin issuers, which is expected to commence in August 2025, aiming to ensure operational stability and compliance [6][8] Strategic Implications - The development of stablecoins is viewed as a strategic tool for the US to maintain and expand the dollar's global dominance, similar to historical shifts in the global monetary system [2][3] - Experts warn that without proper regulation, stablecoins could pose risks to financial stability and monetary sovereignty, as they may not always maintain their pegged value [7][8]