Tether says it bought 27 tons of gold in fourth quarter(finance.yahoo.com)
12 pointsby petethomas6 hours ago4 comments
  • exabrial21 minutes ago
    It blows my mind one can buy _ton_s of gold.
  • didip5 hours ago
    What is the point of stablecoin holder to hold gold?

    digital currency cannot be trusted on its own?

    • Maxatar5 hours 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 hours 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…
        • jfyian hour ago
          Step 1, people hand Tether real money at 0% interest.

          Step 2, Tether invests in interest bearing assets.

          Step 3, Repeat step 2 with profits from step 2.

          The choice of gold is just diversification. Kind of odd timing though.

  • MikeNotThePope5 hours ago
    That’s pretty stupid. If the value drips, it’s no longer sufficient collateral.
    • function_seven5 hours ago
      It's collateral for their XAUt token, not the dollar one.
      • theautist3 hours 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."

    • Scoundreller5 hours ago
      Head, we win. Tails, you lose.
  • cjbenedikt4 hours 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.