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Tether, the entity behind the world’s leading stablecoin USDT, has transferred 951 bitcoin, equivalent to $70.5 million, into a reserve wallet associated with its treasury operations. This is according to data gathered from blockchain analysis firms, including Arkham Intelligence. The funds were sent from a Bitfinex hot wallet to an address identified as a Bitcoin reserve account belonging to the company.
This movement is consistent with a profit distribution strategy implemented in 2023, whereby Tether allocates 15% of its net realized gains to acquire Bitcoin each quarter. This method converts income generated from stablecoin issuance into an increasing Bitcoin asset held on the company’s ledger.
On-chain information indicates that Tether’s Bitcoin holdings have grown to become one of the most substantial corporate portfolios in the industry. Addresses linked to the company’s reserves now hold approximately 97,141 BTC, positioning Tether among the foremost private holders of Bitcoin. These holdings comprise assets acquired through various purchasing periods since 2022.
These acquisitions have consistently supported Bitcoin demand. Each allocation takes coins out of circulation on exchanges and secures them in long-term storage. The framework links the volume of purchases to the company’s earnings, thereby connecting the expansion of stablecoin usage with the accumulation of Bitcoin.
Furthermore, this strategy influences how stablecoin reserve compositions are perceived. Tether asserts that the majority of the backing for USDT comprises U.S. Treasury securities, with Bitcoin constituting a smaller fraction of the overall reserves. The incorporation of Bitcoin introduces market volatility exposure to the reserve assets while maintaining its dollar-pegged liabilities.
Tether.wallet revealed
Tether recently unveiled tether.wallet, a non-custodial digital wallet designed to offer its global financial infrastructure directly to consumers, signifying a transition from a behind-the-scenes liquidity provider to a user-facing platform.
The wallet accommodates significant digital assets such as USDT, Bitcoin, and tokenized gold (XAU₮), concentrating on what the company terms as crucial stores of value for users, especially in developing economies.
Engineered for ease of cryptocurrency use, tether.wallet features human-friendly addresses and enables transaction fees to be settled using the asset being sent, removing the necessity for separate gas tokens. The application is entirely non-custodial, with private keys stored locally on users’ devices.
CEO Paolo Ardoino described the launch as a pivotal advancement towards financial accessibility, aimed at the billions of individuals underserved by conventional banking systems. This product leverages Tether’s existing infrastructure, which the company claims reaches over 570 million individuals worldwide.
The wallet operates using Tether’s open-source Wallet Development Kit and is compatible with multiple blockchain networks, including Ethereum, Polygon, and Bitcoin. This initiative reflects Tether’s broader ambition to broaden its reach into direct consumer applications and facilitate future automated payments, including machine-to-machine and AI-driven transactions.
Source: : bitcoinmagazine.com