Tether’s USDT is the world’s largest stablecoin, with a market capitalization of nearly $100 billion. However, like many top blockchain projects, Tether has been the subject of many questions and inquiries. And when it comes to Tether, most of the questions revolve around its main selling point: its reserves.
Acknowledging these concerns, Tether CEO Paolo Ardoino finally broke the ice and announced that the company has more than 82,000 Bitcoins and 48 tons backing USDT in circulation. He revealed that he owns . Ardoino shared this information in a Twitter/X post dated October 27, 2024, in response to a number of questions about the company's USDT reserve.
JUST IN: Tether’s CEO confirmed that the company’s reserves total 82,454 BTC and 48.3 tons of gold. 💰📈 #tether #bitcoin @LuganoPlanB pic.twitter.com/QRCi1hqMO2
— Tran Hung (@spaftu) October 26, 2024
Ardoino speaks at Plan B event in Lugano
Tether’s CEO revealed the USDT reserve following his previous remarks at the Plan B event in Lugano. The event was a collaboration between the Swiss city of Lugano and Tether to promote the use and adoption of Bitcoin technology to accelerate the city's financial transformation.
As one of the event's keynote speakers, Ardoino discussed Tether's products and explained that his company holds more than $100 billion in U.S. Treasuries backing its stablecoins. He also explained that USDT is fully supported and to clarify any confusion. He further stated that Tether also holds an additional 82,000 BTC, including 48 tons of precious metals.
CEO clarifies USDT reserve
Ardoino’s full explanation of Tether’s reserves generated a lot of attention and comments from the crypto community. Most comments highlight Tether's commitment to maintaining strong and diversified reserves for USDT. Others argue that it is wise to hold gold as part of reserves, arguing that this makes Tether's stablecoin “better than the US dollar.”
Hello, that 48 tons of gold, which is great because it gives stability to USDT.
May I ask, what shape is 48 tons of gold in?Is it allocated bullion? If yes, where is it stored? Is it audited?
Or maybe gold derivatives? For example, like ETF stocks? Unallocated accounts?Futures/Swaps/Options?…— Kinesis Gold (@KinesisGold) October 27, 2024
However, some commenters want more information. Some of these comments emphasize the need for corporate transparency, particularly in how they handle gold and audit their reserves. One Twitter/X user even questioned whether the gold listed in Tether's reserves is gold bullion or just a derivative.
Image: Binance Academy
Tether recovers, market reaction is positive
Ardoino's recent explanations about Tether's reserves come amid growing questions surrounding the company. Recently, there were reports that Tether is the subject of an investigation by the US Department of Justice. Tether quickly denied these reports as pure speculation.
To address questions and allay investor concerns, Tether has partnered with law enforcement agencies around the world to thwart crypto-related crimes. The company also increases the transparency of its reserves and continues to provoke the market with new products and services.
Recently, Tether introduced a local AI development kit for creating and using AI systems for a variety of devices. Ardoino shared that the latest product features promote privacy and are based on peer-to-peer technology, allowing users to write code across devices running on powerful microchips.
Featured images from Pexels, charts from TradingView
