A few days back, stablecoin issuer Tether said they would buy millions of dollars worth of Bitcoin to back the world’s largest stablecoin, USDT. Let's see why Tether chose Bitcoin and no other coin.

Tether has announced its plan to use a portion of its realized investment profits (approx 15%) excluding any unrealized price appreciation of reserve assets, to purchase BTC.

TETHER'S PLAN:

These acquired tokens will be added to the company’s reserve surplus. Tether intends to custody the BTC stash independently without relying on any third-party custodians.

Tether aims to strengthen and diversify the reserves of their stablecoin. The intention is to benefit from the price appreciation of Bitcoin as an investment.

Why Bitcoin?

According to Paolo Ardoino, the CTO, Bitcoin has consistently demonstrated resilience and has emerged as a long-term store of value with considerable growth potential.

He added that their investment in Bitcoin not only enhances their portfolio’s performance but also aligns them with transformative technology.

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