The creator of the PointsVille platform and longtime director of VanEck’s digital asset strategy, Gabor Gurbacs, has some opinions on the significance of precious metals in Tether’s plan.
“Tether is precious metals powerhouse,” says Gabor Gurbacs
May 12, 2023, as revealed by Gurbacs yesterday, sees a rise in the importance of gold for Tether Limited, the company that issues USDT. The platform transforms into a “precious metals powerhouse” with $3.4 billion in yellow metal reserves.
He noted that Tether Gold (XAUT), the largest Gold-pegged stablecoin released by Tether, has a backing of around $500 million.
As a result, Gold makes up 127% more of Tether’s reserves than Bitcoin (BTC). Tether only keeps the first bitcoin equivalent to $1.5 billion.
According to Gurbacs, this pairing of Gold and Bitcoin (BTC) appears to be a potent hedge against impending financial “catastrophic scenarios” and “Black Swan” catastrophes.
Gurbacs maintains an advisory role at Tether, according to his Twitter bio, which should also be noted.
Tether (USDT) supply getting closer to new ATH
Additionally, he said that mixed portfolios should think about holding 5–10% of their assets in commodities, gold, and bitcoin (BTC). Out of all the assets available to regular and institutional investors, precious metals typically have the lowest volatility.
The market capitalization of Tether (USDT) has since nearly recovered all of the losses brought on by the collapse of Terra (LUNA) a year ago. Its market capitalization at the time of publication surpasses $82 billion in equivalent. This statistic came to $83 billion at the ATH.
According to its most recent public records, Tether Limited reported staggering Q1 2023 earnings of $1.5 billion, as previously reported by U.Today.
