Behind the Dollar: Tether Unveils $100 Billion Reserve Backing USDT Stablecoin

In response to recent reports of a U.S. investigation, Tether’s CEO Paolo Ardoino shared a detailed breakdown of the reserves backing the stablecoin USDT at the PlanB conference in Lugano, Switzerland. This move aimed to reassure investors and the public after The Wall Street Journal claimed that U.S. financial and justice departments were investigating Tether for potential violations related to money laundering and sanctions.

Transparent Reserve Composition

According to Ardoino, Tether’s reserves currently include approximately $100 billion in U.S. Treasury bonds, over 82,000 Bitcoin valued at around $5.5 billion at current market prices, and 48 metric tons of gold. These assets are designed to underpin the stability and trustworthiness of USDT, which has established itself as the leading stablecoin in the market.

By revealing these details, Ardoino underscored Tether’s commitment to transparency, aiming to dispel any doubts around USDT’s backing and stability. He emphasized that these reserves act as robust financial support, ensuring that each USDT token maintains its value.

Addressing Wall Street Journal Allegations

The Wall Street Journal article published on October 25 suggested that Tether could be under investigation for allegedly violating money laundering laws. Ardoino vehemently dismissed the claims, stating, “As we informed the WSJ, there is no evidence of any investigation against Tether. The WSJ is recycling old rumors. Period.”

Ardoino highlighted Tether’s proactive collaboration with law enforcement agencies to prevent misuse of USDT for illegal activities. Since 2014, Tether has reportedly assisted authorities in recovering around $109 million linked to crimes like fraud, sanctions evasion, and cybercrime. Ardoino stated, “We work closely with law enforcement to prevent rogue states, terrorists, and criminals from abusing USDT. We would certainly be aware if there was an investigation as falsely claimed in the article.”

The Role of USDT’s Reserves in Market Confidence

With USDT reaching a market capitalization of $120 billion in October, Tether remains a cornerstone of stability in the volatile cryptocurrency market. The breakdown of assets — substantial U.S. Treasury bonds, significant Bitcoin holdings, and large gold reserves — reflects Tether’s strategy to maintain liquidity and market confidence.

Regulatory Outlook and Future Confidence

Ardoino also expressed concern about U.S. regulatory policies lagging behind those in other countries, which has driven many crypto firms to relocate to more favorable jurisdictions. He voiced optimism that regulatory clarity might improve after the 2024 U.S. presidential election, potentially creating a more stable and supportive environment for digital assets.

In the meantime, Tether’s clear reserve strategy aims to reassure both retail and institutional investors, reinforcing USDT’s position as a highly reliable stablecoin and signaling positive momentum for the broader cryptocurrency market.