In a report by BDO Italia – one of the top five independent public accounting firms in the world, for the first time Tether revealed to invest 2% in Bitcoin and 4% in Gold of their total reserves.
Tether, the stablecoin issuer, reported a net profit of $1.48 billion for the first quarter of 2023
For the first time, Tether reveals Bitcoin and Gold allocation in additional category
These additional categories include allocations: Bitcoin, physical gold, overnight repos, and corporate bonds.
Tether says the majority of its investment, about 85%, is held in the form of cash, cash equivalents and other short-term deposits.
Most of the reserves are invested in US T-Bills (US T-Bills) with $53 billion.
Gold and Bitcoin account for about 4% and 2% of total reserves, respectively. They hold $1.5 billion in bitcoin and $3.3 billion in precious metals (Gold makes up 4% which is about $3 billion).
In the report of BDO Italia, we can see that cash accounts for only a small part of $481.35 million. Tether said that it is working to reduce dependence on bank deposits amid the crisis of banks in the US.
USDT Billion Capitalization
Currently, USDT is still the leading stablecoin with a market capitalization of more than $82.5 billion. While the capitalization of two large players, USDC and BUSD, saw a clear decline.
The reason is that BUSD was forced to stop issuing by the New York Department of Financial Services and sued by the SEC. Circle stuck $3.3 billion in USDC collateral in SVB leading to depeg and a massive drop in capitalization in March of this year.
But there is also a notable stablecoin, TUSD, which has almost doubled in capitalization after being supported and has incentive programs on Binance.