Gabor Gurbacs, a well known determine within the cryptocurrency sphere and the founding father of PointsVille, has voiced his insights on the position of treasured metals inside Tether’s monetary technique. As he acknowledged on Could 12, 2023, Gurbacs, who additionally held the place of Director of Digital Property Technique at VanEck, referred to the stablecoin as a “treasured metals powerhouse”.
Based on Gurbacs, gold has gained vital significance for Tether Restricted, the entity accountable for issuing USDT. With a hefty sum of $3.4 billion in reserves held in gold, the stablecoin has secured its standing as a formidable pressure within the treasured metals market.
Gurbacs identified that roughly $500 million backs the circulating provide of Tether Gold (XAUT), Tether’s flagship gold-pegged stablecoin. Consequently, the proportion of gold in USDT reserves surpasses that of Bitcoin (BTC) by a staggering 127%. Tether’s holdings of Bitcoin solely quantity to an equal of $1.5 billion. In Gurbacs’ view, this mix of gold and Bitcoin serves as a sturdy buffer towards potential market disasters and unpredictable “Black Swan” occasions.
It’s value noting that Gurbacs’ evaluation of USDT’s technique comes from an insider’s perspective, as he holds an advisory position inside the firm, as acknowledged in his Twitter profile.
The Rise of Tether amid stablecoin disaster
Moreover, Gurbacs prompt that diversified portfolios may benefit from holding a 5-10% stake in gold, Bitcoin, and commodities. Traditionally, treasured metals have exhibited the least volatility amongst funding property obtainable to retail and company traders.
USDT’s market capitalization seems to have made a robust restoration from the substantial losses triggered by the collapse of Terra (LUNA) a yr in the past. on the time of writing, The stablecoin’s market capitalization has climbed above $82 billion. This determine is inching nearer to its all-time excessive, which stood at $83 billion.