Is USDT Really Stable? Tether Reveals Its Reserves In Bitcoin, Gold, And Bonds

If there is one startup that is thriving in the cryptocurrency business, it is Tether. Despite ongoing investigations, the issuer of USDT continues to show impressive scores in terms of asset reserves. During the third annual Plan ₿ forum in Lugano, its CEO Paolo Ardoino revealed the details of its reserves, unveiling a diversification strategy to ensure financial stability. However, these announcements do not suffice to dispel concerns about the company’s transparency practices.

Tether: A Diversified but Controversial Reserve

Latest USDT news: Tether’s reserves include 82,454 bitcoins, valued at 5.58 billion dollars, as well as 48.3 tons of gold, equivalent to about 3.87 billion dollars. Additionally, there are 100 billion dollars in U.S. Treasury bonds.

At Tether, we deal regularly and directly with law enforcement officials to help prevent rogue nations, terrorists and criminals from misusing USDt. We would know if we are being investigated as the article falsely claimed. Based on that, we can confirm that the allegations in…

— Paolo Ardoino 🤖🍐 (@paoloardoino) October 25, 2024

A diversified strategy that, according to Paolo Ardoino, allows Tether to maintain its stability in the face of market fluctuations.

• 82,454 BTC: about 5.58 billion dollars;
• 48.3 tons of gold: 3.87 billion dollars;
• U.S. bonds: 100 billion dollars.

However, some wonder if these amounts are sufficient to guarantee the stability of USDT, whose market capitalization exceeds 120 billion dollars. To clarify, Ardoino insisted on the importance of U.S. bonds to maintain liquidity. As he says himself:

“We regularly work with law enforcement to prevent abuses, and we would know if we were under investigation.“

The Challenges of Crypto Regulation

Despite reassuring statements from Tether, criticisms abound. The company is under the spotlight, notably after an article in the Wall Street Journal claiming that the Southern District of New York’s Attorney’s Office is investigating potential illicit activities involving USDT.

The accusations suggest possible use of this stablecoin to launder money or fund sanctioned groups.

Nonetheless, Tether rejects these accusations, labeling them as an “irresponsible report.” The crypto company asserts that it has always collaborated with regulators to ensure compliance with its operations, since its founding in 2014. Data shows that it has helped recover over 108.8 million dollars in USDT associated with illicit activities, in cooperation with 145 security agencies.

Finally, not everything is rosy for Tether. The decline in Treasury bond yields, following a change in the Fed’s policy, could cost it 625 million dollars.