Tether secures 140 tonnes of gold, emerging as a visible force in the global gold market

Stablecoin issuer Tether is emerging as a major source of demand in the global gold market on the back of large-scale gold holdings. The development is drawing attention as an example of a crypto firm expanding its influence in traditional commodities markets.

According to Bloomberg on the 28th (local time), Tether Holdings currently holds about 140 tonnes of gold—worth roughly $23 billion. Excluding banks and sovereigns, it is one of the largest gold hoards in the world, and Tether is also said to be adding another 1–2 tonnes each week.

In a Bloomberg interview, Tether CEO Paolo Ardoino compared the company’s gold-holding strategy to the way central banks manage reserve assets. “We are effectively becoming one of the world’s largest gold central banks,” he said, adding that “in an environment of rising geopolitical uncertainty, gold’s role will become even more important.”

Tether’s gold purchases are funded by profits generated from its USDT stablecoin business. USDT in circulation totals about $186 billion, and Tether invests the proceeds across assets including US Treasuries and gold to earn interest and trading income. Tether alone added about 70 tonnes of gold last year—more than most central banks.

The gold is stored in a high-security vault in Switzerland. Ardoino stressed that directly holding physical gold is key, explaining that the goal is to “secure stable access to gold over the long term.” Tether also aims to build the capability to compete with global financial institutions in the gold trading business.

Still, increasing gold’s share within reserves is also being flagged as a risk factor. In November last year, S&P Global downgraded Tether’s USDT stability assessment to “weak,” citing increased exposure to higher-risk assets such as gold, Bitcoin and corporate bonds. The assessment suggests that shifts in the reserve-asset mix could weigh on confidence in the stablecoin.

Tether is extending this strategy through Tether Gold (XAUT), a gold-backed token. XAUT currently has about 16 tonnes outstanding, and the company has indicated its circulating value could expand to $5–10 billion by year-end. Some also expect that if demand for gold tokens continues to rise, Tether’s gold purchases could increase further.