Tether Holdings has emerged as one of the world’s largest private gold holders, with CEO Paolo Ardoino announcing further ambitions to allocate to gold over Bitcoin (CRYPTO: BTC).
Tether’s Bold Bet: Gold Over Bitcoin
Tether, issuer of the $186 billion stablecoin USDT (CRYPTO: USDT), has accumulated roughly 140 tons of gold — valued at about $24 billion — in a high-security former nuclear bunker in Switzerland.
Over the past year alone, Tether bought more than 70 tons of gold, rivaling major central banks and ETFs, and is currently acquiring one to two tons per week.
The purchases are funded by USDT profits, with gold serving both as reserves and as backing for Tether’s gold-backed token, XAUT.
In an interview with Bloomberg, Ardoino compared Tether’s role to that of a central bank, arguing that gold is a safer, debt-free reserve asset in an era of dollar debasement and rising geopolitical risk.
The Surprising Impact Of Tether’s Gold Strategy
Tether plans to go beyond holding gold.
The firm intends to actively trade bullion, has hired senior traders from HSBC, and aims to compete with major bullion banks by exploiting market inefficiencies while remaining long physical metal.
It is also investing in gold royalty companies.
Jefferies analysts say Tether has been a meaningful, though not dominant, contributor to gold’s 65% rally in 2025.
However, rising exposure to non-dollar assets carries risk.
S&P recently downgraded USDT’s stability rating to “weak,” citing this shift.
Still, Tether’s gold strategy has delivered strong returns so far.
The company expects tokenized gold to grow rapidly, projecting XAUT circulation could reach $5–$10 billion and eventually play a role in a potential gold-backed alternative to the U.S. dollar.
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