Tether: Quasi-sovereign allocator

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Tether was the seventh-largest net buyer of US Treasurys in Q2 2025. With ~$8 billion in incremental purchases, Tether is positioning its reserves as a quasi-sovereign allocator. This aligns with its business model: backing USDT with highly liquid, low-risk assets while capturing yield from elevated short-term rates. The move underscores two dynamics:

• Institutionalization of stablecoins: Tether is now functionally a material participant in global USD funding markets, alongside central banks and sovereign wealth funds.
• Liquidity concentration risk: Treasury bills are becoming the backbone of USDT collateral. Any regulatory, liquidity or market shock to this exposure could reverberate across crypto markets and short-term dollar funding channels.

Tether’s ascent as a top-10 foreign buyer signals a structural shift: Stablecoin issuers are no longer just liquidity users within crypto, but systemically relevant investors in global sovereign debt markets. For Treasurys, this is supportive in the near term, but the reliance on a private, opaque entity adds a new risk layer to the market’s stability profile.

Continuing on the tokenized asset front, Figure Technology Solutions (hereafter “Figure”) formally filed for an IPO. It’s aiming for a Nasdaq listing under the ticker FIGR, with Goldman Sachs, Jefferies and BofA Securities serving as lead underwriters. 

The company reported a 22% YoY increase in revenue to approximately $190.6 million for the first half of 2025. Even more compelling is Figure’s return to profitability: $29.1 million in net income, reversing a $15.6 million loss in the same period last year. Figure also disclosed that, since inception, it has originated over $16 billion in home equity loans, and counts more than 160 partners — including mortgage originators, banks, servicers and credit unions — utilizing its Provenance blockchain-powered lending platform. 

In 2025, public markets have seen a vibrant “crypto IPO summer.” It was marked by standout debuts and filings from major players like Circle, Bullish, Gemini and others, driven by renewed regulatory clarity, investor enthusiasm and institutional backing. Figure Technology distinguishes itself within this wave by anchoring its strategy not around an exchange or stablecoin, but rather around tokenization of real-world, traditionally illiquid assets using public infrastructure (Provenance). With its profitability and healthy growth, Figure showcases a highly touted use case for blockchains in capital markets.

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