CryptocurrenciesBasicHow Tether Backs USDT With U.S. Treasury Bills to Generate Core Revenue
Tether's business model, centered on earning interest from the reserve assets backing its USDT stablecoin, highlights a critical link between traditional fixed-income markets and digital asset liquidity. When market participants mint USDT, the world's largest stablecoin, Tether receives dollars or equivalent assets and channels most of these reserves into short-term U.S. Treasury bills and other low-risk instruments.
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