Tether Is Now 'Too Big To Fail,' Says Anthony Pompliano: Here's Why

Anthony Pompliano said on his show this week that Tether USDT/USD, the world's largest stablecoin issuer, has become “too big to fail” due to its expanding role in the U.S. financial system.

What Happened: Addressing his followers on X, Pompliano emphasized that Tether’s growing demand for U.S. Treasuries has positioned it as a critical player in global markets.

"Tether is now too big to fail," Pompliano declared. "They've quickly become one of the largest buyers of U.S. Treasuries, plugging a gap left by traditional buyers like China and Japan."

Pompliano pointed to data showing Tether ranked as the seventh-largest buyer of U.S. Treasury bills in 2024, ahead of many sovereign nations.

The crux of Tether's systemic importance lies in its Treasury purchases, which have filled a gap left by traditional buyers.

A chart shared by Tether CEO Paolo Ardoino on X confirms this, showing Tether's $33.1 billion increase in U.S. Treasury holdings in 2024, ranking it seventh among buyers, ahead of nations like Canada, Taiwan, and Mexico, while Japan and China reduced their holdings by $400 billion and $300 billion, respectively.

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"Tether was the 7th largest buyer of U.S. Treasuries in 2024, compared to Countries ," Ardoino's post on X stated.

Pompliano noted that this shift comes at a time when historic buyers like China and Japan have been net sellers of U.S. debt.

“Japan and China are dumping our debt, and Tether is stepping in to buy it,” he said. "If Tether were to stop buying Treasuries, that's $33 billion of demand that disappears."

What’s Next: Beyond its Treasury purchases, Pompliano stressed Tether's sheer scale.

The stablecoin issuer now claims more than 400 million users globally, adding about 30 million new users each quarter.

With over $13 billion in reported profits last year and roughly 150 employees, Pompliano noted, “Tether is the most profitable company per employee in human history, pulling in more than $86 million per employee."

While praising Tether’s growth, Pompliano highlighted its significance to U.S. markets. “They've become an important economic partner of the United States, and we need them to keep buying more Treasuries,” he said.

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