The company that created the USDT token, Tether, has amassed $2.5 billion in excess reserves and intends to buy Bitcoin with 15% of its realized net operating profits. Interest rates on the company’s portfolio of U.S. Treasury bills and other investments, such as gold, are generated by these reserves. The choice made by Tether to keep these extra reserves shows how seriously it takes the stability of its stablecoin product. Tether has declared its intention to use up to 15% of its net operating profits as part of its excess reserves to buy Bitcoin.
Bitcoin is praised for being decentralized and rare, and is the pinnacle of a reliable and secure monetary system.For the first quarter of the year, Tether reported a net profit of $1.5 billion, including $3.3 billion in precious metals. Tether also offers a stablecoin called Tether Gold (XAUT) that is backed by gold.
