Tether’s New Asset Frontier: Physical Gold
(Source: Tether_to)
Bloomberg reports that stablecoin issuer Tether Holdings SA has been steadily increasing its allocation to physical gold in recent years, now holding around 140 metric tons with a market value of approximately $23 billion. Outside of banks and sovereign states, Tether is now considered one of the world’s largest known holders of physical gold—a role that goes far beyond the traditional scope of a stablecoin issuer.
Steady Accumulation, Not Short-Term Moves
Tether CEO Paolo Ardoino stated that the company currently purchases about 1 to 2 metric tons of gold each week and plans to store these physical assets long-term in a former Swiss nuclear bunker. This serves as a highly secure, low-risk reserve allocation.
He described this strategy as making Tether, in some respects, “one of the world’s largest central banks of gold.”
A Forward-Thinking Approach in Geopolitical Turmoil
Ardoino further explained that as global political and financial tensions rise, gold-backed currencies may emerge to compete with the dollar system. To capture this potential demand, Tether launched the XAUT gold token—an on-chain asset backed by physical gold—positioning itself ahead of market shifts.
Tether’s Gold Purchases Outpace Most Central Banks
In 2025 alone, Tether acquired more than 70 metric tons of gold—surpassing the annual purchases of nearly every individual central bank except Poland’s, and exceeding the yearly accumulation of most major gold ETFs. This underscores Tether’s rapidly growing presence in the gold market.
Not Just Hoarding Gold—Aiming to Be a Trading Powerhouse
Beyond direct gold holdings, Tether is aggressively expanding its industry presence. The company has hired a former senior gold trader from HSBC and is developing its own gold trading platform, aiming to compete with major financial institutions such as JPMorgan Chase. Tether has also invested in several mid-sized Canadian gold mining royalty firms, extending its reach upstream to resource development.
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Summary
Tether’s in-depth approach to physical gold is no longer simply a hedge; it is a comprehensive long-term strategy integrating stablecoins, on-chain gold, and the traditional precious metals market. As geopolitical and monetary uncertainties mount, Tether is using physical reserves and tokenized assets to position itself for potential shifts in the global financial order. Its influence on the global asset landscape continues to expand.
