Tether Cuts Gold Trading Desk Ahead of Upcoming Audit
- Tether aimed to allocate up to 15% of its $20 billion investment portfolio to physical gold.
- The company reported over $10 billion in profit for the previous year and $6.3 billion in excess reserves.
- Two senior traders from HSBC were hired to enhance Tether’s gold trading capabilities but were dismissed just three months later.
- On March 24, Tether announced it would undergo its first full financial audit by a Big Four firm, pausing a planned $20 billion fundraising effort until completion.
- As of March, Tether held approximately 130 metric tons of physical gold despite recent layoffs in its gold desk.
Tether’s restructuring efforts come as it prepares for a formal audit, aiming to present a simpler reserve narrative amidst increased regulatory scrutiny and competitive pressures from other stablecoins like USDC.
With USDT’s market cap at over $184 billion, the outcome of this audit will be crucial for maintaining credibility in the crypto market as Tether seeks to optimize its reserve structure and governance standards.
