Tether CEO Paolo Ardoino recently spilled the beans in an interview with Bloomberg News, revealing that the company keeps $8 billion in gold safely tucked away in a Swiss vault. That's right, $8 billion in gold, and we’re talking about “the most secure vault in the world.” Sure, the Swiss are famous for their watches and chocolate, but now they're also the keepers of Tether’s gold stash. Almost the entire 80-ton stockpile belongs to Tether, placing the El Salvador-based company among the top gold hoarders globally.
Gold now makes up nearly 5% of Tether’s colossal $112 billion reserve portfolio, according to a March attestation. As for the value, it matches UBS Group AG’s precious metals book, one of the few banks that actually breaks out gold holdings. That’s a big deal in a world where gold is the ultimate safety net, and Tether is comfortably perched on top of it.
Let’s take a moment to appreciate the magic of numbers here. Tether’s USDT stablecoin hit a market capitalization of $159 billion last month, growing by a cool $5 billion in just one month. The gold stash may be pretty impressive, but the real jackpot? USDT’s dominance in the crypto market.
The Future of Gold-Backed Tokens
But wait, there’s more. Ardoino argues that Tether can scale up this whole gold thing without jacking up fees for users. How? By keeping the gold in-house, avoiding commercial vault operators that charge around 50 basis points for storage. It’s a win-win: Tether gets to keep the gold, and users don’t feel the financial burn.
That said, Tether’s gold dreams could be derailed if lawmakers across the globe get their way. Draft US bills and Europe’s MiCA framework may require stablecoins like USDT to be backed only by cash or near-cash instruments, kicking gold to the curb. If that happens, Tether may be forced to liquidate the gold that backs USDT, though, happily, its gold-backed token, XAUT, would still keep its precious metal ties intact.
Speaking of XAUT, it’s tied to 7.7 tons of gold worth around $819 million. That’s a far cry from the 950-ton giants in exchange-traded funds, but still big enough to pull off redemptions at vault doors in Switzerland. So while USDT’s market dominance is undeniable, gold-backed tokens like XAUT are starting to make waves in their own right.
Ardoino isn’t worried, though. In fact, he predicts demand for gold-backed tokens could skyrocket if investors start doubting the US fiscal system and seek ways to avoid banking risks, all while staying within the blockchain universe. If central banks around the world are any indication, the trend toward gold is only gaining momentum.
In 2025, spot gold has surged about 25%, driven by everything from trade tensions to geopolitical uncertainty. And why? Ardoino sums it up nicely:
“Every single central bank in the BRICS countries is buying gold.”
That’s why the price of gold has been climbing.
For now, Tether is holding tight to its gold, earning yield on Treasurys, and keeping a separate token that’s directly convertible into the vaulted bars. Traditional bullion economics meet blockchain in a delightful marriage that could shape the future of stablecoins. But of course, Tether still has to convince regulators that its gold reserves won’t get in the way of USDT’s liquidity, especially in times of stress.
It’s a bold play, but with Tether’s gold vault and market muscle, they’re staking their claim as one of the most powerful players in the game. Time will tell if regulators agree.
Jordan V.
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
