Step aside, Warren Buffett; Stablecoin issuers have more US debt than Berkshire Hathaway

by · August 26, 2022

Warren Buffett raised eyebrows this week when his firm, Berkshire Hathaway increased its exposure to US Treasury bills. If you’re one of the few remaining bulls out there, Buffett’s flight to safety is worrisome because it signals that the Oracle of Omaha would rather earn a 3% return than play the stock market. If stocks go up in the fall, as I’ve been predicting for months, you can expect Bitcoin (BTC) to follow suit.

Looking at the numbers, Berkshire’s exposure to T-bills grew to $75 billion at the end of June, up from $58.5 billion at the start of 2022. But even with a 28% increase, Berkshire doesn’t have as many T-bill investments as those the leading stablecoin issuers. Stablecoins currently have a market capitalization of $153 billion, and a large percentage of their support comes from treasury bills. This is just a reminder that stablecoins are serious business.

Stablecoin issuers have more US debt than Berkshire Hathaway: Report

Warren Buffett’s Berkshire Hathaway has a huge amount of short-term US debt. Well, stablecoin issuers have more. According to data from JPMorgan, stablecoin issuers Tether, Circle and other short-term treasury bills are worth $80 billion, compared to $74 billion for Berkshire Hathaway. These huge sums collect interest from the US government, allowing holders to earn a passive income. If you’re surprised by this development, don’t be – stablecoins are a force to be reckoned with and are paving the way for mass crypto adoption.

Iconic brands including Nike, Gucci have made $260 million in NFT sales

Nike, Adidas, Gucci, Dolce & Gabbana and Tiffany & Co. – these companies have found real value and utility in non-fungible tokens (NFT). Industry data revealed this week that these companies generated a combined $260 million in NFT sales. Nike’s revenue from NFTs totaled a whopping $185.3 million, with secondary market volumes of nearly $1.3 billion. While no one denies how badly the NFT market has cratered in recent months, the world’s most iconic brands have successfully incorporated new technology into their business engagements. Expect a lot more NFT-focused customer engagement in the future.

DBS bank reports 4x growth in Bitcoin purchases on the DDEx exchange in June

Are Savvy Investors Buying Bitcoin Dip Using Trading Platforms Developed by Big Banks? Data from DBS Bank suggests so. The bank’s DDEx exchange saw a massive influx of buyers in June as investors looked to capitalize on falling BTC and Ether (ETH) prices. In fact, between April and June, BTC buy orders on the exchange rose by a factor of four. Whether these buyers will be diamond-handed hodlers or speculators remains to be seen. But in the depths of the crypto winter, it’s still a positive sign.

Bug bounty quadruples for the Ethereum network – Up to $1M payouts before merging

With excitement and fear in full swing ahead of Ethereum’s long-awaited merger, the foundation behind the smart contract platform has announced a $1 million bounty program to incentivize white hats to uncover “critical flaws” on the blockchain. The bounty program reflects the high-stakes nature of the upcoming merger, which is tentatively scheduled for September 15th. If you’re an ETH holder, all you have to do is sit back and relax – and keep a close eye out for scams.

Don’t miss it! What crashed the crypto relief rally?

What looked like a promising relief rally quickly soured last week, as Bitcoin plunged from a high of nearly $25,000 all the way back to $21,000. Where does crypto go from here? In this week’s market report, I sat down with fellow analysts Marcel Pechman and Benton Yaun to discuss the latest price movements in the market. I also warned that September and October are volatile months for traditional finance – and thus crypto. You can watch the full replay below.

Crypto Biz is your weekly pulse on the business behind blockchain and crypto delivered straight to your inbox every Thursday.