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Tether, the world’s largest stablecoin issuer by market capitalization, said it plans to invest 15% of its net profits in Bitcoin to bolster its reserves.
Tether said it hopes the move will “strengthen and diversify” its $1 peg stablecoin reserves. statement Released on Wednesday.
“Our investment in Bitcoin is not only a way to improve the performance of our portfolio, but also a revolutionary technology that has the potential to reshape the way we do business and live. It’s also a way of putting ourselves together,” Paolo said. Adino, Tether’s chief technology officer.
Tether said its investment in Bitcoin “underscores the company’s confidence in the cryptocurrency market.”
Bitcoin hit a high of about $69,000 in November 2021, but has since fallen to nearly $27,000 as of Wednesday morning.
Finance
Tether has a market capitalization of nearly $83 billion, followed by USD Coin and Binance USD, according to the report. coin market cap.
The tether is Recorded record net profit According to the company’s latest testimony, excess reserves stood at $1.48 billion in the first quarter, bringing total excess reserves to $2.44 billion. report.
“Tether is committed to navigating ever-changing macroeconomic conditions for users who have trusted Tether for the past nine years to deliver the most trusted stablecoin on the market,” the company said. said earlier this week.
Could a stablecoin bill be on the horizon?
US lawmakers are working to regulate stablecoins, including mandating reserve requirements and banning algorithmic stablecoins.
The stablecoin bill is seen as an easy achievement for lawmakers to pass compared to other bills regulating the cryptocurrency industry.
Late last year, former House Financial Services Committee Chairman Maxine Waters (California Democrat) and former House Financial Services Committee Chairman Patrick T. McHenry (RN.C) worked with the Treasury Department and the Federal Reserve (Fed) to We tried to draft a bill, but it did not come to fruition. “pretty get there”
The House Financial Services Committee will hold a hearing on Thursday titled “Putting ‘Stable’ in ‘Stablecoins: How Legislation Helps Stablecoins Deliver on Their Promises.’”