In a strategic move to diversify the backing of its USDT stablecoin, Tether reportedly acquired an additional 8,888 Bitcoin (BTC) for $380 million in the fourth quarter of last year. The stablecoin issuer, which previously announced its intention to invest up to 15% of its profits into Bitcoin, now holds a total of 66,465 BTC, securing its position as the 11th-largest Bitcoin holder globally, according to Dune Analytics.
Tether’s decision to shift away from traditional assets like U.S. Treasury bonds, which previously backed its USDT stablecoin, reflects a broader trend in the industry. With a market capitalization exceeding $95 billion, USDT stands as the world’s largest stablecoin.
In its latest attestation report, Tether disclosed holdings of $72.6 billion in government bonds and $1.7 billion in Bitcoin, alongside other allocations. This move aligns with the company’s commitment to diversify its portfolio and underscores the growing importance of cryptocurrencies in the financial landscape.
Despite historical scrutiny regarding the quality of its assets, Tether’s custodian, Cantor Fitzgerald CEO Howard Lutnick, recently provided reassurance, affirming the legitimacy of the company’s holdings. Tether’s proactive approach to adapting its reserves reflects the dynamic nature of the cryptocurrency market and its ongoing efforts to maintain transparency and credibility.
This article is for informational purposes only and should not be considered financial advice. Cryptocurrency investments are subject to risks, and readers are encouraged to conduct their own research and seek professional guidance before making any investment decisions. The information presented here is based on publicly available sources, and the accuracy of such sources is not guaranteed. The author and publisher are not responsible for any losses or damages incurred as a result of the use of this information. Any views or opinions expressed in this article are those of the author and do not necessarily represent the views of any other entity.
Stay up to date with Busy Fox crypto news channel