coinedition.com
In a recent tweet, Tether’s strategy advisor, Gabor Gurbacs, pointed out the significant influence of Tether by stating that if it were considered a country, it would rank as the 25th largest holder of U.S. treasuries.
If Tether was a country, it would be the 25th largest holder of U.S. treasuries. It is in the U.S. national interest to responsibly distribute USD-backed stablecoins, especially in Emerging Markets. The U.S. should thank Tether for buying when others are ditching the Dollar. pic.twitter.com/tle3cQDGPN
— Gabor Gurbacs (@gaborgurbacs) May 22, 2023
Gurbacs stressed the importance of responsibly distributing USD-backed stablecoins, particularly in Emerging Markets, emphasizing that such action aligns with the national interest of the United States. Furthermore, Gurbacs suggested that Tether deserves recognition from the U.S., as it continues to purchase U.S. dollars while others are moving away from the currency.
On May 12, Gurbacs stated that the significance of gold has been steadily rising for Tether Limited. By holding a substantial reserve of $3.4 billion in this valuable metal, the platform has emerged as a dominant force in the realm of precious metals.
Moreover, the strategy expert highlighted that approximately $500 million is supporting the circulating supply of Tether Gold (XAUT), which happens to be the largest stablecoin pegged to gold issued by Tether.
Consequently, the portion of Tether’s reserves represented by gold is 127% greater than that of Bitcoin. Tether holds only around $1.5 billion worth of the primary cryptocurrency. According to Gurbacs, this combination of gold and BTC appears to serve as a robust safeguard against potential market “catastrophic scenarios” and unforeseen “Black Swan” events.
In addition, he expressed the view that diversified portfolios should consider allocating a portion of 5-10% to gold, Bitcoin, and commodities.
Traditionally, precious metals exhibit the least volatility compared to other investment options available to both individual and institutional investors. Furthermore, the market capitalization of Tether (USDT) has nearly recovered all the losses incurred due to the Terra (LUNA) collapse a year ago. Currently, its market capitalization stands at over $82 billion. The all-time high for this metric was $83 billion.