Tether to buy hundreds of millions worth of USDT

Published May 18th, 2023 - 07:13 GMT
Tether to buy hundreds of millions worth of USDT
Tether's USDT is equal to one US dollar - Source: Justin TALLIS / AFP

Tether to invest in Bitcoin on a monthly basis

ALBAWABA – Cryptocurrency giant Tether announced Wednesday its interest in purchasing hundreds of millions worth of its own cryptocurrency, USDT, to support its stability, Investing.com reported.

According to the company’s latest reports, detailing the assets backing up the USDT, Tether is estimated to purchase $222 million worth of USDT.

Notably, USDT is the largest stablecoin in the world, the investing platform explained.

The company will also invest 15 percent of its profits on a monthly basis in Bitcoin to support the reserves backing its USDT.

Tether to buy hundreds of millions worth of USDT
Tether to invest in Bitcoin on a monthly basis - Source: Shutterstock

Tether’s USDT is virtually pegged to the dollar at a one-to-one exchange rate.

Its current trading value stands in excess of $82.8 billion, according to Coingecko, and it is the main cryptocurrency in competition with USDC and Binance’s BUSD.

In a statement carried by Investing.com, Paolo Ardoino of Tether explained that “the decision to invest in Bitcoin, the world’s largest and first cryptocurrency, is based on its strength and capabilities as an investment asset.”

This step will make Tether a primary owner of Bitcoin, as other major investors have been mobbing to stack up large supplies of the legendary crypto.

Investing.com explained that buyers believe that Bitcoin is somewhat immune to inflation and devaluation.

Experts and analysts, via CNBC, added that Bitcoin may receive a big push this year due to the whale effect of major players in the market purchasing crypto in bulk.

Tether’s investment approach was questioned in the past, in terms of the quality of its reserve assets.

The company invests a lot of its reserves in commercial bonds, i.e. short-term debt instruments issued by companies that are not guaranteed.

In February, Tether announced that they have shrunk their controversial reserves in commercial bonds to zero, Investing.com highlighted.

You may also like