Tether (USDT) is one of the leading crypto-assets on the market with an impressive asset backing of precious metals. Founded in the year 2023, Tether Limited is the entity responsible for issuing USDT – a stablecoin that has generated a mammoth reserve of $3.4 billion backed in gold, making it a powerful force in the precious metals market. This is further demonstrated by the circulation of Tether Gold (XAUT), whose supply is backed by an impressive $500 million. In addition, Tether's holdings of Bitcoin (BTC) comprise $1.5 billion, representing a ratio of gold to Bitcoin reserves of over 127%. As the former Director of Digital Assets Strategy at VanEck, Gabor Gurbacs states, this type of buffer is essential for maintaining market stability, particularly when unpredictable 'Black Swan' events appear.

Investing in diversified portfolios through a combination of gold, Bitcoin, and commodities may provide additional security. According to Gurbacs, an allocation of 5-10% could serve to reduce volatility, considering that the historical performance of precious metals demonstrates the least fluctuations compared to other available assets.

This sentiment is reflected in USDT's market capitalization, which has skyrocketed from losses incurred by the collapse of Terra (LUNA) to a capitalization of over $82 billion. Although still shy of its all-time high of $83 billion, the cryptocurrency is clearly on an upwards trend, further solidifying its reputation as a top competitor within the crypto-asset industry.



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