Stacy Pereira
- Tether holds approximately 80 metric tons of gold, valued at ~$8 billion, in a private Swiss vault.
- Tether avoids paying third-party storage fees, cutting costs as it scales its gold reserves.
- Gold accounts for nearly 5% of Tether’s overall $112 billion-plus reserve portfolio.
Tether Holdings SA, the issuer of the world’s largest stablecoin USDT, is quietly holding a staggering $8 billion of gold in a private Swiss vault. This amounts to roughly 80 metric tons of gold, making it one of the world’s top gold holders outside banks and sovereign states.
CEO Paolo Ardoino confirmed the vault is fully owned by Tether and described it as “the most secure vault in the world,” though he declined to disclose its location or its establishment date. Tether’s investment in physical gold serves multiple purposes for the company: Gold is seen as a safer asset compared to national currencies and is increasingly used as a hedge amid mounting debt and fiat volatility.
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Tether’s gold strategy & token
By Tether owning and operating its own vault, it eliminates third-party custody fees, which saves tens or hundreds of millions annually for the company. These fees are typically around 50 basis points and not needed for the gold-backed tokens at scale. Remember, Tether also issues XAUT, a token pegged 1:1 with physical gold.
The stablecoin issuer is poised to expand its gold holdings, with CEO Ardoino confirming their intention to “grow those stores.” However, emerging regulatory frameworks in the U.S. and EU may require stablecoins to be backed by cash or short-term government bonds rather than physical assets like gold. Compliance with these rules might force Tether to reshape its reserve strategy if it seeks broader regulatory approval.
Founded in 2014, Tether issues USDT, a stablecoin pegged 1:1 to the U.S. dollar. Currently, USDT boasts around $159 billion in circulation and dominates the stablecoin market.
