tl;dr
Tether CEO Paolo Ardoino revealed the company holds about $8 billion in gold stored in a Swiss vault, making it one of the largest private gold holders globally. Gold constitutes nearly 5% of Tether’s $112 billion reserve portfolio. Tether’s USDT stablecoin reached a $159 billion market cap, growing...
Tether CEO Paolo Ardoino disclosed that the company holds approximately $8 billion in gold stored in a Swiss vault, which he described as “the most secure vault in the world.” This reserve makes Tether one of the largest private gold holders globally, with nearly the entire 80-ton stockpile owned outright. As of March, gold accounts for almost 5% of Tether’s $112 billion reserve portfolio, a value comparable to the precious metals holdings of UBS Group AG, a major bullion dealer.
Tether’s stablecoin, USDT, recently hit a market capitalization of $159 billion, driven by nearly $5 billion in monthly growth. Ardoino highlighted that Tether’s approach to self-custodying bullion allows the company to scale its gold reserves without incurring the typical 50 basis points fees charged by commercial vault operators. Despite this progress, upcoming regulations present challenges. Proposed US and European legislation such as the GENIUS Act and MiCA framework restrict fiat-backed stablecoins to cash or near-cash collateral, excluding commodities like gold. Should these rules become law, Tether would need to liquidate the bullion backing USDT if it seeks licenses in those markets, though it may retain gold tied to its gold-backed token, XAUT.
XAUT currently circulates against 7.7 tons of gold valued at about $819 million, which, while smaller than major gold exchange-traded funds, maintains tangible redemption options through Swiss vaults. Ardoino suggested that demand for gold-backed tokens could rise if investors become wary of US fiscal health and seek secure, on-chain alternatives that avoid traditional bank deposit risks.
Spot gold prices have surged approximately 25% in 2025 amid increasing geopolitical tensions and trade disputes, with BRICS central banks actively increasing their gold purchases. Ardoino emphasized this as a key driver behind gold’s price rise. Tether faces the ongoing task of assuring regulators that a metal-heavy reserve will not threaten USDT’s liquidity during market stress. Currently, the firm balances physical metal holdings with Treasury yields and issues a separate gold-backed token with direct convertibility to vaulted bullion, effectively merging classic bullion economics with modern blockchain settlement.