Tether Expands Gold Reserves by 14 Tons Amid Diversification Efforts

Tether, the issuer of the world's largest stablecoin USDT, has expanded its gold reserves by 14 tons in the second quarter, bringing the total to over 146 metric tons. This addition of physical gold is part of Tether's efforts to diversify its reserves and back its digital dollar tokens.

The company's CEO, Paolo Ardoino, stated that Tether remained one of the world's largest buyers of U.S. Treasuries and reduced secured lending by $2.38 billion in the quarter. The gold purchased is valued at $18.8 billion as of June 30th.

The majority of Tether's reserves, approximately 90%, are held in U.S. Treasury Bills. Gold and Bitcoin represent only a small portion of the reserves, with 10% and 3% respectively. The company aims to allocate 10-15% of its $20-billion investment portfolio to physical gold.