At the Plan ₿ Forum, Tether CEO Paolo Ardoino revealed the company’s extensive reserves, including $5.58 billion in Bitcoin, $3.87 billion in gold.
By Bhushan Akolkar
Edited by Julia Sakovich
Updated
2 mins read
Following the reports of alleged illegal legal and regulatory actions against USDT USDT $1.00 24h volatility: 0.0% Market cap: $143.81 B Vol. 24h: $48.67 B stablecoin issuer Tether last week, CEO Paolo Ardoino gave insights into the financial reserves of the company while speaking at the Plan ₿ Forum in Lugano.
Tether’s USDT is currently the largest stablecoin in the market with a market cap of $120 billion. Thus, it’s nearly 3.47 times larger than its closest competitor USDC USDC $1.00 24h volatility: 0.0% Market cap: $59.76 B Vol. 24h: $4.95 B , which has a market cap of $34.65 billion.
During the presentation by Uquid’s CEO Tran Hung at the Plan ₿ Forum last weekend, a slide picture popped up showing Tether’s reserves including $5.58 billion in Bitcoin BTC $87 939 24h volatility: 0.6% Market cap: $1.75 T Vol. 24h: $30.54 B and another $3.87 billion in gold, as per the exchange rates calculated on October 27.
However, while noticing Tether’s Bitcoin and Gold holdings, questions started popping up in Hung’s thread with people asking that the total reserves of $9.45 billion don’t fully match up with the stablecoin’s market backing.
However, addressing these concerns, Tether CEO Paolo Ardoino chipped in stating that a large part of Tether’s reserves also include US government bonds. He wrote:
“Since I see a lot of confusion in this thread, let me clarify that: – Tether has ~100B in US treasuries. – Plus it has 82k+ BTC and 48T+ of gold”.
As we know, Tether is among the top holders of US government bonds. In fact, its bond value holdings are also above some of the top economies like Germany.
Last week, stablecoin issuer Tether faced a fresh set of allegations stating that it’s facing probe over violation of money-laundering rules. However, CEO Paolo Ardoino swiftly pushed back these claims calling the WSJ report “regurgitating old noise”. One of the Tether spokespersons also said:
“These stories are based on pure rank speculation despite Tether confirming that it has no knowledge of any such investigations into the company. The article also carelessly glosses over Tether’s well-documented and extensive dealings with law enforcement to crack down on bad actors seeking to misuse tether and other cryptocurrencies.”
Some market analysts also believe that Tether is just too big to fail at this moment and its fall will have broader implications across the entire crypto space. Despite doubts over its reserves, Tether has always stood the test of time. Even during periods of market and greater withdrawals, the company has never flouted liquidity provisions.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
