At an event in Switzerland, Tether CEO Paolo Ardoino shared new details about the USDT reserve. He said the stablecoin holds $100 billion in U.S. Treasuries, 82,000 Bitcoins worth $5.5 billion, and 48 tons of gold. This is the first time Tether has publicly disclosed details of its reserves. This announcement proved the company’s strong position in the crypto market.
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Understanding the USDT Reserve: Financial Insights and Stability Concerns
Reserve configuration breakdown
U.S. Treasuries make up 83.5% of USDT reserves. At current prices, Bitcoin holdings account for 4.6% of reserves, with physical gold accounting for the rest. This combination helps keep USDT’s $120 billion market cap stable.
The team checks these reserves daily to ensure each USDT has adequate backing. Regular monitoring ensures that values are consistent for all users.
Dealing with investigation allegations
Tether’s CEO denied the Wall Street Journal’s claims about the US Department of Justice investigation. “As we told WSJ, there is no indication that Tether is under investigation. WSJ is regurgitating old noise. Full stop.”
He added, “We regularly and directly engage with law enforcement authorities to prevent the misuse of USDT by rogue states, terrorists, and criminals, as the article falsely claims. We will know if we are being investigated.”
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Transparency and compliance record
Since 2014, Tether has helped recover $109 million in stolen funds. They share daily updates on reserves. Users can trade USDT for equal value with USD at any time. Monthly reports ensure that reserves are accurate and properly valued. The company follows strict rules to protect users’ funds and maintain trust in the platform.
Future reserve management
Mr. Ardoino plans to maintain his current reserve structure. He predicts that U.S. cryptocurrency regulations could change after the 2024 election, potentially impacting how stablecoins manage their reserves. The company will continue to conduct regular audits. Tether’s CEO said holding large amounts of U.S. Treasuries helps keep the system stable and liquid. Their approach focuses on long-term stability and security.
Market impact
USDT gained credibility by providing details of its reserves. Nowadays, more and more people are trading using USDT, and large companies are also starting to use USDT for fund management. Most traditional assets are held in reserves, making people less anxious about risk. A transparent approach has allowed USDT to maintain its position as the leading stablecoin on the market.
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