• Tether, the world’s biggest stablecoin issuer, says it will now direct as much as 15% of its profits into Bitcoin (BTC).
• The firm behind USDT will self-custody the BTC and further strengthen its reserves.
• Tether made nearly $1.5 billion in profits in the Q1 of this year alone.
Tether to Direct up to 15% Profits Into Bitcoin
Tether, the world’s biggest stablecoin issuer, announced that it will now direct as much as 15% of its profits into Bitcoin (BTC). According to an official announcement, Tether believes “Not your keys, not your Bitcoin” and takes possession of the private keys associated with all of its Bitcoin holdings. Tether’s chief technology officer Paolo Ardoino also acknowledged the company’s move on Twitter by explaining why they chose to invest in BTC.
Why Invest In Bitcoin?
Tether believes that investing in Bitcoin is beneficial due to its decentralized nature and scarcity. It also provides access to a global financial system for anyone with an internet connection and has shattered traditional finance boundaries. Last week, Tether reported that it made nearly $1.5 billion in profits in the Q1 of this year alone which will be used to purchase more BTC for their reserves .
How Will This Impact The Crypto Market?
This move from Tether could have a major impact on the crypto market by injecting billions of dollars into BTC which could help drive up demand and prices. This increased investment could attract more institutional investors who are interested in taking advantage of opportunities within cryptocurrency markets. It is likely that other firms may follow suit if they see positive results from this move by Tether so we can expect more news about investments from other crypto firms soon.
What Is A Stablecoin?
A stablecoin is a type of cryptocurrency designed to reduce volatility by pegging itself against a fiat currency or asset like gold or oil. They are typically used for payments instead of investing since their value does not fluctuate significantly compared with other cryptocurrencies which makes them better suited for many everyday transactions such as remittances and international payments. Stablecoins offer users greater flexibility when transacting because they can easily convert between different currencies without having to go through multiple exchanges or exchanges with high fees attached them them .
This move indicates that large corporations are recognizing the potential benefits offered by cryptocurrencies such as BTC and are starting to allocate funds towards them accordingly which could lead us into another bull run in the coming months ahead!