All articles tagged with #reserve assets
Central banks worldwide are increasing their gold reserves despite record-high prices, viewing gold as a strategic, liquid asset to diversify holdings and hedge against geopolitical and economic uncertainties, including concerns over the U.S. dollar and fiat currencies.
Gold has surpassed the euro to become the world's second-largest reserve asset after the US dollar, driven by record central bank purchases, soaring prices, and geopolitical concerns, with global gold reserves nearing postwar highs and countries diversifying away from the US dollar.
Tether, the issuer of the world's largest stablecoin, USDT, has announced that it will invest 15% of its net profit, approximately $222 million, into bitcoin to diversify its reserve assets. Tether's CTO, Paolo Ardoino, stated that the decision to invest in bitcoin was underpinned by its strength and potential as an investment asset. Tether's USDT token aims to stick to a 1-to-1 peg to the U.S. dollar and has a circulating supply of over $82.8 billion. However, Tether and its USDT token remain a source of contention in the crypto market, with concerns over the quality of its reserve assets and ongoing investigations by the U.S. Department of Justice.