In a notable development within the cryptocurrency and precious metals sectors, Tether Holdings has positioned itself among the largest private custodians of gold worldwide. The company, known primarily for issuing the stablecoin USDT valued at $186 billion, has accumulated approximately 140 tons of physical gold stored in an exceptionally secure facility—a retrofitted nuclear bunker situated in Switzerland.
This accumulation represents a strategic pivot where Tether prioritizes gold holdings over Bitcoin, the leading cryptocurrency. According to Paolo Ardoino, Tether’s Chief Executive Officer, the firm’s inventory includes over 70 tons of gold purchased within the last 12 months alone, matching acquisitions by significant central banks and exchange-traded funds. Currently, Tether is acquiring gold at a rate of one to two tons weekly. These bullion purchases are financed through the profits generated by USDT operations, reinforcing both the reserves architecture for USDT and the backing for XAUT, Tether’s token representing gold ownership.
In discussions with Bloomberg, Ardoino framed Tether’s gold acquisition strategy in the context of central bank behavior amid financial uncertainty. He highlighted gold’s distinct advantage as a reserve asset free from debt and its role in safeguarding value against dollar depreciation and intensifying geopolitical risks. This characterization underscores Tether’s view of gold as a foundation of stability within their broader asset management approach.
Beyond mere accumulation, Tether has revealed ambitions to actively engage in gold bullion trading. The firm has onboarded experienced traders from established financial institutions such as HSBC, aiming to compete directly with major bullion banks. Their strategy includes exploiting pricing and market inefficiencies while maintaining a net long position in physical gold. Additionally, Tether plans investments in gold royalty companies, further diversifying exposure within the precious metals domain.
Industry analysts at Jefferies have noted that while Tether’s sizeable gold purchases have been influential, they represent a significant but not dominating factor contributing to gold’s 65% price increase in 2025. Nevertheless, the firm’s increasing allocation to non-dollar assets has attracted scrutiny. For instance, Standard & Poor’s recently downgraded USDT’s stability rating to “weak,” explicitly citing the shift in asset composition toward gold and away from dollar-denominated holdings as a concern.
Despite these risks, Tether’s gold-oriented strategy has yielded tangible financial gains so far. The company projects robust growth for its tokenized gold product, XAUT, anticipating that circulation could expand to between $5 billion and $10 billion in the foreseeable future. This development suggests the possibility of tokenized gold emerging as a meaningful alternative in digital currency markets and potentially serving as a complement or competitor to the U.S. dollar in asset backing.
Market considerations aside, Tether’s approach exemplifies a broader trend where cryptocurrency firms increasingly integrate traditional assets such as precious metals into their treasury and reserve management strategies. This offers insight into evolving risk management practices and responses to macroeconomic and geopolitical dynamics shaping asset valuation and investor confidence.