Crypto Giant Tether Hoards Billions in Gold

Tether, known for the stablecoin USDT, relies on physical gold to secure its reserves.

The El Salvador-based crypto company Tether Holdings SA has increased its gold reserves to around 80 tons. The current market value of these holdings is about 8 billion US dollars. The precious metal is stored in a company-owned vault in Switzerland. The exact location is not disclosed for security reasons.

Own Vault Instead of External Service Providers

Tether CEO Paolo Ardoino speaks of "the safest vault in the world." The company deliberately forgoes the services of specialized precious metal storage and instead relies on its own solution – also for cost reasons. Rumors about former military bunkers in the Alps circulate repeatedly, but there is no confirmation of this.

Tether Among the Largest Private Gold Holders

With its reserves, Tether is among the largest private gold holders worldwide – comparable to banks like UBS. Nevertheless, gold makes up only about 5 percent of Tether's total reserves. The majority consists of US Treasury bonds and other liquid assets.

Stablecoin USDT Remains Core Business

The company is the issuer of the world's largest stablecoin, USDT, which is pegged 1:1 to the US dollar. Currently, around 159 billion US dollars of USDT are in circulation. In addition, Tether offers the gold-backed token XAUT. Each token corresponds to one ounce of gold and can be redeemed directly in Switzerland.

Gold as a Hedge in Uncertain Times

Tether views physical gold as a strategic reserve against economic turbulence and regulatory uncertainties. According to Ardoino, the precious metal is a more reliable store of value than any national currency.

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