Tether Gold

Tether USDt

Gold

Terra

Rise

Gabor Gurbacs, a well-known figure in the cryptocurrency sphere and the founder of PointsVille, has <a href="https://twitter.com/gaborgurbacs/status/1657067405976141831?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1657067405976141831%7Ctwgr%5E110cc95362f22cb74ef1732646c055642c4ef447%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fu.today%2Fheres-how-much-tether-holds-in-gold" rel="nofollow noopener" target="_blank">voiced his insights</a> on the role of precious metals within Tether&#8217;s financial strategy. As he stated on May 12, 2023, Gurbacs, who also held the position of Director of Digital Assets Strategy at VanEck, referred to the stablecoin as a &#8220;precious metals powerhouse&#8221;.



According to Gurbacs, gold has gained significant importance for Tether Limited, the entity responsible for issuing <a href="https://www.cryptopolitan.com/tether-earned-1-5-billion-in-net-profit-in-q1-2023-details/">USDT</a>. With a hefty sum of $3.4 billion in reserves held in gold, the stablecoin has secured its status as a formidable force in the precious metals market.



<figure class="wp-block-image size-large is-resized"><img decoding="async" src="https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1-954x1200.jpg" alt="Tether" class="wp-image-303868" width="466" height="586" srcset="https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1-954x1200.jpg 954w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1-238x300.jpg 238w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1-768x966.jpg 768w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1.jpg 1202w" sizes="(max-width: 466px) 100vw, 466px" /></figure>



Gurbacs pointed out that roughly $500 million backs the circulating supply of Tether Gold (XAUT), Tether&#8217;s flagship gold-pegged stablecoin. Consequently, the proportion of gold in USDT reserves surpasses that of Bitcoin (BTC) by a staggering 127%. Tether&#8217;s holdings of Bitcoin only amount to an equivalent of $1.5 billion. In Gurbacs&#8217; view, this blend of gold and Bitcoin serves as a robust buffer against potential market disasters and unpredictable &#8220;Black Swan&#8221; events.



<figure class="wp-block-image size-full is-resized"><img decoding="async" src="https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1-1.jpg" alt="Tether" class="wp-image-303870" width="527" height="392" srcset="https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1-1.jpg 1200w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1-1-300x224.jpg 300w, https://www.cryptopolitan.com/wp-content/uploads/2023/05/1-1-1-768x572.jpg 768w" sizes="(max-width: 527px) 100vw, 527px" /></figure>



It&#8217;s worth noting that Gurbacs&#8217; analysis of USDT&#8217;s strategy comes from an insider&#8217;s perspective, as he holds an advisory role within the company, as stated in his Twitter profile.



<h2 class="wp-block-heading" id="the-rise-of-tether-amid-stablecoin-crisis">The Rise of Tether amid stablecoin crisis</h2>



Additionally, Gurbacs suggested that diversified portfolios could benefit from holding a 5-10% stake in gold, Bitcoin, and commodities. Historically, precious metals have exhibited the least volatility among investment assets available to retail and corporate investors.



USDT&#8217;s market capitalization appears to have made a strong recovery from the substantial losses triggered by the collapse of Terra (LUNA) a year ago. at the time of writing, The stablecoin&#8217;s market capitalization has climbed above $82 billion. This figure is inching closer to its all-time high, which stood at $83 billion.

How much does Tether (USDT) hold in reserves?

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