Tether's Hard Asset Strategy Shields It from Crypto Market Turmoil

Tether, the world’s largest stablecoin issuer, is reportedly faring better than its competitors during the current crypto market downturn. CEO Bo Hines highlighted that the company has been actively investing in hard assets, which has left it in a strong position to withstand recent price crashes. As of Wednesday, Tether's market capitalization stood at approximately ₱10.7 trillion ($184 billion), a significant figure that underscores its dominance in the stablecoin sector.

During a recent conference at Duke University, Hines emphasized Tether's diversified investment strategy. He noted that the company has increased its holdings in high-value assets such as gold and Bitcoin. The share of these high-risk assets backing Tether’s USDT stablecoin rose from 17% to 24% between September 2024 and November 2025. In contrast, the proportion of US Treasury bills backing USDT decreased from 81% to 75%, according to data from S&P Global. Hines remarked, "Even in a torturous market like today, we’re probably the crypto company that’s sweating the least," highlighting the resilience of Tether's investment model.

Tether has also become a major player in the gold market, rivaling some countries and multinational banks in terms of gold holdings. The company has diversified its portfolio beyond traditional stablecoin backing, becoming the third-largest shareholder in Adecoagro, Argentina’s largest producer of milk and rice. This diversification strategy has allowed Tether to maintain profitability, making it one of the most profitable companies globally on a per-employee basis.

However, Tether's aggressive investment approach has raised eyebrows. A credit rating agency, S&P Global, recently downgraded Tether in its annual stability assessment, citing concerns over its reliance on high-risk reserves. This has sparked debate about the long-term sustainability of Tether's business model, especially as the crypto market remains volatile. Hines defended the company’s strategy, stating that Tether is committed to investing in assets that have intrinsic value, such as land, gold, and Bitcoin.

Looking ahead, Tether continues to explore new business avenues. The company has ventured into Bitcoin mining and has developed software for crypto wallet developers. Additionally, Tether launched Hadron, an asset tokenization business, and a decentralized messaging app called Keet. Last year, Tether also introduced a wellness app and made headlines with its offer to buy Italian football club Juventus, although the proposal was rejected. With its broadening scope of operations, Tether aims to solidify its position as a leading tech company in the crypto space, as described by Hines. As the market evolves, Tether's ongoing strategies will be closely monitored by industry observers and investors alike.