Government Bonds And Stablecoins — How Do They Fit Together?

The interest rate turnaround is having an effect: Circle covers USDC to a large extent with US government bonds, and Tether now does the same with USDT. Those who hold Stablecoins thus indirectly become creditors of the US government — but unfortunately do not receive any interest.

With a market capitalization of almost 44 billion dollars, the Circle-Dollar…