Tether, operator of world’s largest USD-pegged stablecoin USDT becomes ‘precious metals powerhouse,’ Gabor Gurbacs says
Contents
- “Tether is precious metals powerhouse,” says Gabor Gurbacs
- Tether (USDT) supply getting closer to new ATH
Cryptocurrency veteran Gabor Gurbacs, founder of the PointsVille service and long-term director of digital assets strategy in VanEck, shared his thoughts on the role of precious metals in Tether’s strategy.
“Tether is precious metals powerhouse,” says Gabor Gurbacs
As stated by Gurbacs yesterday, May 12, 2023, Gold becomes increasingly important for Tether Limited, the issuer of USDT. With $3.4 billion of reserves stored in the yellow metal, the platform becomes a “precious metals powerhouse.”
Tether Gold-assets are around $3.4 Billion. XAUT AUM is around $500mm. Tether is now a precious metals powerhouse.
Don’t underestimate the Tether team. High integrity and hard working team that supports Bitcoin, commodity technologies and financial inclusion. pic.twitter.com/0JPvNUk6n5
— Gabor Gurbacs (@gaborgurbacs) May 12, 2023
He noticed that about $500 million is backing the circulating supply of Tether Gold (XAUT), the largest Gold-pegged stablecoin issued by Tether.
As such, the share of Gold in Tether’s reserves is 127% larger than that of Bitcoin (BTC). Tether only stores $1.5 billion equivalent in the first cryptocurrency.
This combination of Gold and Bitcoin (BTC) looks like a powerful hedge against upcoming market “catastrophic scenarios” and “Black Swan” events, Gurbacs says.
It should also be noticed that Gurbacs holds an advisory position in Tether, as per his Twitter bio description.
Tether (USDT) supply getting closer to new ATH
He also opined that mixed portfolios should consider holding between 5-10% in Gold, Bitcoin (BTC) and Commodities. Typically, precious metals have the lowest volatility out of all assets available for retail and corporate investors.
Meanwhile, Tether (USDT) market capitalization has almost erased all losses caused by the Terra (LUNA) collapse a year ago. As of printing time, its market cap exceeds $82 billion in equivalent. At the ATH, this metric totaled $83 billion.
As covered by U.Today previously, Tether Limited logged a whopping $1.5 billion in Q1, 2023 profits, as per its latest public reports.
Source: https://u.today/heres-how-much-tether-holds-in-gold