Derived from BitPush, Tether has adjusted its reserve strategy by incorporating gold and bitcoin into its holdings amid expectations of an upcoming interest rate cut cycle. The stablecoin issuer, which previously relied heavily on U.S. Treasury bonds to generate profits, now holds over 100 tons of gold and 90,000 BTC, accounting for around 12-13% of its reserves. This move aims to offset potential income losses from lower yields on U.S. debt. However, the shift has raised concerns among rating agencies, with S&P Global downgrading Tether’s ability to maintain the USDT-USD peg due to increased exposure to high-risk assets.
Tether Shifts Reserve Strategy, Adds Gold and Bitcoin Amid Expected Rate Cuts
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