Stablecoin Market 'Ripe For Disruption,' Says Market Commentator, As Tether Rakes In Billions Through Interest On US Treasuries

Market commentator The Kobeissi Letter highlighted connected Monday the monolithic standard of Tether (CRYPTO: USDT) successful the U.S. treasuries market.

In an X post, Kobeissi Letter said that the “stablecoin marketplace is ripe for disruption,” emphasizing however Tether has go the 17th-largest holder of U.S. sovereign debt,  totaling astir $135 billion. This places the institution up of large economies specified arsenic South Korea, Saudi Arabia and Germany.

When a idiosyncratic oregon instauration wants to bargain USDT, they deposit dollars into a Tether slope account. Tether past invests these dollars to bargain treasury bills, earning billions successful involvement income.

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Notably, Tether reported much than $10 cardinal successful nett net crossed the archetypal 3 quarters of 2025 — much than galore S&P 500 banks — and holds $6.8 cardinal successful excess reserves.

“Stablecoin holders are efficaciously ‘lending’ Tether superior astatine a 0% involvement rate, which is past flipped connected Treasuries,” The Kobeissi Letter stated.

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Kobeissi Letter pointed to JupUSD, a USD-pegged stablecoin launched by the Jupiter exchange, which returns the output from the underlying reserves to the ecosystem. However, the yields are accessible lone by supplying JupUSD into Jupiter’s lending protocol, not by holding JupUSD directly.

The accrued vulnerability comes pursuing the transition of the GENIUS Act, besides known arsenic the stablecoin bill. The authorities establishes a regulatory model for the sector, which is valued astir $315 billion.

Treasury Secretary Scott Bessent predicted past twelvemonth that stablecoins could unlock $2 trillion in demand for U.S. treasuries.

Interestingly, Tether CEO Paolo Ardoino said past twelvemonth that the company has nary plans to spell public, citing its profitability and blimpish absorption arsenic cardinal reasons down the decision. Tether relocated its operations to El Salvador earlier this year.