Tether, issuer of the most widely used stablecoin, will use up to 15% of its net realized operating profits to buy bitcoin in an effort “strengthen and diversify” the reserves that back USDT.
USDT, which aims to stick to a 1-to-1 peg to the U.S. dollar, is the largest stablecoin by market capitalization. Traders use stablecoins to swap in and out of various cryptos without having to use fiat currencies.
“The decision to invest in Bitcoin, the world’s first and largest cryptocurrency, is underpinned by its strength and potential as an investment asset,” said Paolo Ardoino, CTO of Tether.
“Bitcoin has continually proven its resilience and has emerged as a long-term store of value with substantial growth potential. Its limited supply, decentralized nature, and widespread adoption have positioned Bitcoin as a favored choice among institutional and retail investors alike.
Our investment in Bitcoin is not only a way to enhance the performance of our portfolio, but it is also a method of aligning ourselves with a transformative technology that has the potential to reshape the way we conduct business and live our lives.”
As reflected in Tether’s Q1 2023 Assurance Report, as of the end of March 2023, Tether already held approximately $1.5 billion in BTC in its reserves. The company held $81.8 billion in reserve at the end of March, the same report showed.
