Tether Limited, the issuer of one of the most widely used stablecoins - USDT - is quickly establishing itself as a “precious metals powerhouse”. At the moment, the company is said to have a reported $3.4 billion in gold stored in its reserves. This is more than double the amount stored in Bitcoin (BTC).

The reserves of Tether Gold (XAUT) have been reported to be around a respectable $500 million.

Gabor Gurbacs, founder of PointsVille service and longtime director of digital assets strategy at VanEck, recently shared his thoughts on this development, personally holding an advisory position at Tether. He suggested that due to upcoming market “catastrophic scenarios” and “Black Swan” events, investors should consider diversifying their portfolios with around 5-10% of investments in gold, bitcoin and commodities in order to serve as a hedge.

Historically, gold has been proven to be the least volatile asset out of retail and corporate investments presently available.

Due to Tether’s success and recent profits, their market cap has been rapidly rising during the past year to reach just $1 billion shy of reaching a new all-time-high. The company’s Q1 2023 reports even showed them registering billion+ dollar profits.

Tether Limited’s strategy of diversifying cryptocurrency with gold and other precious metals serves as a much-appreciated addition to their business. Not only does it helps promote natural hedging against uncertainty in the market, but it also adds new stablecoins to their portfolio like the popular XAUT which is backed by gold. This is an avenue the company is sure to explore further, as gold and other precious metals offer a reliable and universally-acknowledged form of wealth confidence.



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