Tether Doubles Down on Gold Reserves in Q2
Tether, the issuer of the world's largest stablecoin, USDT, has significantly boosted its gold reserves in the second quarter. The company added 14 tons of physical gold to its reserves, bringing the total to over 146 metric tons. This increase follows a similar addition of 6 tons during the first quarter.
The company, led by CEO Paolo Ardoino, emphasized its commitment to backing its stablecoins with high-value assets. Tether's USDT has $183.7 billion worth of tokens in circulation, while the gold-backed token XAUT has $2.9 billion in circulation. Each USDT represents one U.S. dollar held in reserve.
Tether also reported a net operating profit for the quarter of $1.50 billion, driven by its U.S. Treasury portfolio and repo performance. The data suggests that Tether accelerated gold purchases during a period when gold prices declined 14% in the second quarter.