Tether has moved 951 bitcoin worth $70.5m into its reserve wallet, which is tied to the treasury operation, reports on-chain data From blockchain analytics companies including Arkham Intelligence. The transaction originated in a Bitfinex Hot Wallet and was sent to a Bitcoin reserve address tied to Arkham Intelligence.
This aligns the transaction with Tether’s 2023 profit allocation policies, wherein Tether allocates 15% of its net realized profits toward Bitcoins are purchased every quarter. It converts the revenue generated from stablecoins into increasing Bitcoin positions on the company’s balance sheet.
Tether has one of the largest positions among corporates in Bitcoin, according to on-chain records. Reserve addresses attributable to Tether hold approximately 97,141 BTC, placing Tether as one of top Bitcoin holders for private entities. The holdings are transfers that have been accumulated since multiple purchases cycles in 2022.
Purchases have become a consistent source of Bitcoin supply demand. Every allocation moves coins out of exchange liquidity into long-term custodial custody. This structure links acquisitions to revenue, which in turn ties into stablecoin Bitcoin usage increases with Bitcoin accumulation
This strategy can also influence perceptions about the composition of stablecoin reserves. Tether says that USDT is backed by U.S. Treasury bonds, while Bitcoin represents a lesser portion. Bitcoin’s addition to the portfolio of reserves introduces a price-related exposure while maintaining dollar linked liabilities.
Discover the Tether.Wallet
Yesterday’s Tether announced The launch of tether.wallet is a digital self-custodial wallet that brings its global financial infrastructure to the end user, bringing a change from a backend liquidity provider into a consumer-facing platform.
The wallet supports key assets including USDT, Bitcoin, and tokenized gold (XAU₮), focusing on what the company describes as essential stores of value for users, particularly in emerging markets.
Tether.wallet simplifies crypto use by introducing human-readable addresses, and allowing transaction fees to paid directly in the asset transferred, without the need for gas tokens. App is self-custodial with all private keys being stored locally in the device.
The CEO Paolo Ardoino described the launch of this product as an important step towards financial inclusion. It targets billions who are not served by conventional banking systems. Tether claims that its existing network reaches more than 570 millions users worldwide.
The wallet runs on Tether’s open source Wallet Development kit and supports several blockchains such as Ethereum, Polygon, Bitcoin, etc. This move is part of Tether’s strategy to extend into user-facing applications, and allow future AI and machine-to-machine payments.
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Source: bitcoinmagazine.com
