Tether says it bought 27 tons of gold in fourth quarter

https://finance.yahoo.com/news/tether-says-bought-27-tons-174955806.html

by petethomas • 6 months ago

15 10 6 months ago

finance.yahoo.com

MikeNotThePope• 6 months ago

That’s pretty stupid. If the value drips, it’s no longer sufficient collateral.

Scoundreller2• 6 months ago

Head, we win. Tails, you lose.

function_seven• 6 months ago

It's collateral for their XAUt token, not the dollar one.

theautist• 6 months ago

From the article:

"The reserves backing Tether USDT were dominated by the U.S. Treasuries with gold representing only 7% as of the end-September."

didip• 6 months ago

What is the point of stablecoin holder to hold gold?

digital currency cannot be trusted on its own?

Maxatar• 6 months ago

If you read the article, it's because Tether also issues a gold token called XAUT whose value is pegged to the price of gold:

https://coinmarketcap.com/currencies/tether-gold/

Scoundreller2• 6 months ago

Their whole market cap only equates to ~14 tons at current prices though… and article says they bought 26 tons in the quarter before this quarter where they bought 27 tons…

cjbenedikt• 6 months ago

Does anybody remember Long Term Capital Management? https://en.wikipedia.org/wiki/Long-Term_Capital_Management They also thought nothing can ever go wrong. Until it did... Dunning-Kruger effect.

exabrial• 6 months ago

It blows my mind one can buy _ton_s of gold.