Tether, the operator of the world’s largest USD-pegged stablecoin, USDT, is becoming the “powerhouse of precious metals”, says Gabor Gurbacs
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Cryptocurrency veteran Gabor Gurbacs, founder of the PointsVille service and long-term director of digital asset strategy at VanEck, shared his thoughts on the role of precious metals in Tether’s strategy.
“Tether is the powerhouse of precious metals,” says Gabor Gurbacs
As Gurbacs stated yesterday May 12, 2023, gold is becoming increasingly important to Tether Limited, the issuer of USDT. With $3.4 billion in reserves stored in the yellow metal, the platform is becoming a “precious metals powerhouse”.
Tether Gold’s assets are approximately $3.4 billion. XAUT AUM is around $500 million. Tether is now a precious metals powerhouse.
Don’t underestimate the Tether team. A team of high integrity and hard work that supports Bitcoin, core technologies and financial inclusion. pic.twitter.com/0JPvNUk6n5
— Gabor Gurbacs (@gaborgurbacs) May 12, 2023
He noticed that around $500 million is backing the circulating supply of Tether Gold (XAUT), the largest gold-pegged stablecoin issued by Tether.
Thus, the share of gold in the reserves of Tether is 127% higher than that of Bitcoin (BTC). Tether only stores the equivalent of $1.5 billion 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, says Gurbacs.
It’s also worth noting that Gurbacs holds an advisory position in Tether, according to his bio description on Twitter.
Tether (USDT) Supply Approaches New ATH
He also opined that mixed portfolios should consider holding between 5-10% gold, Bitcoin (BTC), and commodities. Typically, precious metals have the lowest volatility of any asset available to retail and corporate investors.
Meanwhile, the market capitalization of Tether (USDT) has nearly erased all of the losses caused by the collapse of Terra (LUNA) a year ago. At press time, its market capitalization exceeds $82 billion in equivalent. At the ATH, that metric stood at $83 billion.
As previously reported by U.Today, Tether Limited posted $1.5 billion in profits in the first quarter of 2023, according to its latest public reports.