Tether Expands Gold Reserves to Back USDT, Boosts Net Operating Profit

Tether, the issuer of the largest stablecoin USDT, has increased its gold reserves to back the digital dollar by 14 tons in the second quarter. This brings the total amount of gold held for USDT reserves to over 146 metric tons. The company has been actively buying gold since last year, with a significant portion of its assets dedicated to backing the Tether XAUT gold token.

The reserves backing USDT are predominantly comprised of U.S. Treasury Bills, with gold and Bitcoin representing only 10% and 3% of the reserves, respectively. According to Paolo Ardoino, CEO of Tether, the company's net operating profit for the quarter was $1.50 billion, driven by the performance of its U.S. Treasury portfolio and repo activities.

Tether's gold buying accelerated in the second quarter, a period marked by a 14% decline in bullion prices, compared to the previous quarter's purchases of 6 tons. The company's total bullion holdings are not disclosed, but Ardoino stated that Tether aims to allocate 10%-15% of its own $20-billion investment portfolio to physical gold.