Tether defends gold reserves as markets and scrutiny rise
Gold makes up nearly 5% of Tether’s $112 billion reserves, sparking regulatory concerns.
Tether has revealed it holds around $8 billion worth of gold in a Swiss vault, placing it among the largest private holders of the precious metal globally.
According to CEO Paolo Ardoino, the El Salvador-based firm owns almost an 80-tonne stockpile outright, describing the site as ‘the most secure vault in the world’.
Gold accounts for nearly 5% of Tether’s $112 billion reserve portfolio, matching UBS Group’s reported gold exposure. While self-custody helps reduce operational fees, regulatory frameworks in the US and EU may soon force stablecoin issuers to exclude commodities from their reserves.
If enforced, Tether could be required to liquidate its bullion unless the gold backs its separate token, XAUT.
XAUT currently circulates against 7.7 tonnes of gold worth approximately $819 million. Although far below significant exchange-traded funds, its physical redemption model adds a layer of investor confidence.
Ardoino suggested demand for bullion-linked crypto could rise if investors grow wary of US fiscal health or seek to avoid deposit risk.
Gold prices have surged 25% in 2025 amid trade frictions and geopolitical concerns. As BRICS banks buy more gold, Tether blends bullion with blockchain but must show regulators it won’t harm USDT’s liquidity in times of stress.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!
