Is Tether Dumping Bitcoin For Gold? $1 Billion Monthly Buys Boost Reserves
CEO of Tether Paolo Ardoino indicated that the USDT issuer has increased gold purchases and plans to continue doing so in the next few months. This has led to speculation that the stablecoin issuer is dumping Bitcoin for the precious metal, although this is not the case.
Tether Continues to Invest in Both Bitcoin and Gold
According to a Reuters reportTether’s CEO said his company plans to continue investing in Bitcoin and gold as its ultimate asset. He said it makes sense to allocate about 10% of their portfolio to BTC and 10%-15% to gold. The stablecoin producer mainly uses gold as a part of the USDT stablecoin’s storage and funding. XAUT gold tokenwith a market cap of $2.6 billion.
Bloomberg reported that USDT issuer holds about 140 tons of gold, according to Ardoino. Stablecoin producer funds are worth about $24 billion, representing the largest known pool outside of central banks, ETFs, and commercial banks. In a the latest releaseTether announced that it is now among the top 30 gold holders worldwide, surpassing countries such as Greece, Qatar, and Australia.
I CEO of Tether he indicated that they were buying at the rate of one to two tons per week and planned to continue doing so for at least the next few months. At current prices, that equates to $1 billion in monthly purchases. Despite the significant interest in gold, the USDT issuer has not abandoned its Bitcoin strategy.
Tether bought 8,888 Bitcoinworth about $779 million, in the fourth quarter of last year. The stablecoin producer currently holds $96,370 BTC ($8.46 billion) in total. Based on these holdings, it ranks as the largest Bitcoin holder, behind Michael Saylor’s Strategy, which holds 712,647 BTC.
Long Term Goal of Modem Use
During his interview with Bloomberg, Ardoino described Tether’s role in the gold market as that of a central bank. This happened as he said the stablecoin issuing company is becoming one of the largest gold banks in the world. Their strong view on gold appears to stem from the belief that America’s global rivals will introduce a gold-backed alternative to challenge it. dollar situation as a reserve.
Meanwhile, the CEO of Tether revealed that they are not only looking to hold gold but also to sell it, competing with banks in trading the precious metal. Ardoino said they need to be the best gold trading floor in the world so they can continue to accumulate over time. His comments are timely gold reaches new all-time highs (ATHs) above $5,300. Meanwhile, Bitcoin continues to retreat, trading below $90,000.
Featured image from Getty Images, chart from Tradingview.com
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