Tether’s Quarterly Treasuries Hit $124B

Tether’s latest attestation puts US Treasury holdings at $124B — a record, with important context the headline hides.

Some of that is in repo positions and short-duration paper that’s functionally treasury-like but not bills directly. Net-net credit quality solid.

What it means for stablecoin economics

At current rates, the float generates ~$5.5B annualized in interest income against operating costs likely well under $300M. One of the most profitable financial businesses on earth right now.

CFL view: regulatory pressure is the binding constraint. Economics fine; politics not.