Key Points:
Finally, at the Plan ₿ Forum, Tether CEO Paolo Ardoino disclosed for the first time that Tether holds $9.45 billion in Bitcoin and gold, further revealing the company’s reserve structure. However, he added that these are part of a larger reserve strategy involving nearly $100 billion in U.S. Treasuries.
The breakdown meant to reassure investors, comes after a Wall Street Journal report on regulatory investigations into the matter. To that end, Ardoino defended the practice of Tether, characterizing the report as speculative and outdated. Beyond that, during an interview about questions on social media, Ardoino claimed that Tether is committed to being as transparent as any institution could be.
Investors had taken to social media with their concerns after seeing shared slides of the portfolio and were asking whether those assets were enough to back Tether’s market capitalization of $120 billion. According to him, it has been designed more for the stability of the market, and from there came BTC, gold, and U.S. government bonds.
Read more: WSJ Tether Report Draws Strong Criticism From Company
During a presentation, indeed, Ardoino confirmed that the reserve holdings of Tether include 82,454 BTC and 48.3 tons of gold, valued at $9.45 billion, but he added that this doesn’t show the complete picture. Tether’s reserve structure contains a big chunk of the U.S.
Treasuries, adding heft to the financial security of the stablecoin. In a bid to alleviate recent confusion, he broke down the details of these reserves via his social media account and tried to silence concerns about transparency and the backing of assets. The disclosure follows Tether’s continued campaign for more transparency in the markets of stablecoins after a report by the Wall Street Journal raised regulatory concerns.
It denied the implications of this report, referring to the claims as outdated and “reckless.” With over a $120 billion market capitalization, Tether still leads the way in this line of business despite the challenges imposed by regulators and markets alike.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |
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