Stablecoin giant Tether is quietly sitting on a mountain of gold. According to a recent report from Bloomberg, Tether’s CEO, Paolo Ardoino, disclosed that the company owns nearly 80 tons of gold a stash valued at around $8 billion.
The gold is reportedly secured in what Ardoino calls the “most secure vault in the world,” located somewhere in Switzerland. However, for security reasons, Tether won’t reveal the exact location or when the vault was established. The secrecy underscores the value and sensitivity of the massive gold reserve.
This hefty stockpile makes Tether one of the largest holders of gold outside of banks and nation-states, rivaling the scale of precious metals held by major financial institutions like UBS Group.
Why Gold? A Hedge Against Uncertainty
Speaking with Bloomberg, Ardoino explained why Tether decided to own physical gold rather than simply paying fees to vault operators. Rising costs and the increasing global appetite for safe-haven assets drove the decision.
“Gold, I think, should be logically a safer asset than any national currency. So eventually, I think that if people start to get concerned about the potential increase of the debt of the United States, they might look at alternatives,” Ardoino said.
He also pointed out a global trend that’s helping push gold prices higher:
“Every single central bank in the BRICS countries is buying gold, so that is why gold price went up in our opinion.”
Data from Trading Economics shows gold has soared by 38.5% over the past year, reaching an all-time high of $3,390 per ounce on April 21. As of now, gold is trading slightly lower at around $3,289. Like Bitcoin, gold is often viewed as a hedge against inflation and economic instability.
Backing Tether Gold (XAUT)
Tether isn’t just holding gold for its own balance sheet. Earlier this year, the company issued 7.7 tons of physical gold to back its digital asset Tether Gold (XAUT), a token fully backed by pure gold on a 1:1 ratio. At press time, Tether Gold boasts a market cap exceeding $811 million, offering investors a way to gain exposure to gold without handling the physical metal.
With its sizable gold reserves and the backing of digital assets like XAUT, Tether is clearly positioning itself as a major player not just in the crypto space, but also in the world of precious metals.
