Tether Holdings has quietly become one of the largest private holders of gold, amassing about 140 tons of bullion as it bets on tokenized gold and prepares for what it sees as a challenge to the dollar’s dominance, Bloomberg reported.
Rapid Accumulation Lifts Holdings to $23 Billion
Tether, issuer of the world’s largest stablecoin (USDT) and the gold-backed token Tether Gold (XAUT), now holds roughly $23 billion of gold, said Chief Executive Paolo Ardoino, adding that the company has been buying about one to two tons of bullion a week and expects to continue at that pace for at least the next few months, reviewing its gold demand on a quarterly basis.
Last year alone, Tether bought more than 70 tons of gold for its reserves and its gold-backed token Tether Gold (XAUT), according to the report, placing it alongside some of the more active central banks and large gold-backed exchange-traded funds.
Gold Integrated Into USDT Reserves and Storage Strategy
The company uses gold as part of the reserves backing its stablecoin USDT, alongside U.S. Treasuries and other assets such as Bitcoin, with the token’s circulation reaching $186 billion. Additionally, holding gold is central to Tether’s strategy, Ardoino said, and that is why the firm stores bullion itself in a former nuclear bunker in Switzerland rather than relying solely on third-party custodians.
Tether is also moving beyond simple accumulation, hiring two senior bullion traders from HSBC, as it explores building what Ardoino called one of the strongest gold trading operations in the market. The firm is also studying strategies to arbitrage differences between futures and spot prices while keeping a large net long position in physical gold.
Equity Stakes Deepen Exposure to Gold
To deepen its exposure to the metal, Tether has taken stakes in several Canadian-listed gold royalty and streaming firms, such as Elemental Royalty, Metalla Royalty & Streaming, Versamet Royalties and Gold Royalty, whose income depends on future gold production and prices, according to people familiar with the matter.
Central Bank-Style Strategy and Tokenized Gold Push
Tether’s XAUT represents about 16 tons of gold, or roughly $2.6 billion, and its market value could reach $5 billion to $10 billion, Ardoino said. That would require buying more than a ton of gold a week just to meet demand for the token, on top of purchases for Tether’s own reserves.
Ardoino compares Tether’s approach to that of a central bank, arguing that gold is a safer reserve asset than national currencies and more appealing to users in emerging markets who already turn to gold to shield themselves from currency debasement.
