Tether expands its gold reserves as demand surges
Wall Street investment bank Jefferies reports that stablecoin giant Tether has increased its holdings of physical gold to 148 tons, making it one of the world's largest holders of the precious metal. Tether's total gold reserve value has exceeded $23 billion, allowing the company to outpace even some nation states in this regard.
Such large-scale gold purchases by the crypto company are related to the growing demand for stablecoins, especially against the backdrop of economic and geopolitical instability in recent years. As the most popular stablecoin, Tether is seeking to diversify its reserves to ensure the reliability and liquidity of its digital currency.
From the experts' perspective, Tether's increasing gold reserves indicate the company's desire to boost trust in the stablecoin amid periodic scandals surrounding its reserves. This could also be a signal that Tether is considering the possibility of pegging its coin to physical gold, which could potentially make it more stable and reliable.