This year, gold prices have surged by 25% as geopolitical tensions and trade conflicts bolstered demand for the precious metal as a safe-haven asset. Strong demand from central banks and sovereign institutions has further supported the upward trend in gold prices.
Cryptocurrency firm Tether Holdings SA recently announced that it holds $8 billion worth of gold—approximately 80 metric tons—in secure vaults in Switzerland. As the issuer of the world’s largest stablecoin, USDT, Tether stated that this holding makes it “one of the largest holders of gold outside of banks and sovereign states,” rivaling the scale of institutions like UBS Group AG.
By allocating a portion of its reserves to gold, Tether has achieved asset diversification while aligning with the current market’s demand for safe-haven precious metals.
Tether’s USDT stablecoin is pegged nearly 1:1 to the US dollar, with its circulating supply now reaching $159 billion. According to the company’s March report, gold accounts for 5% of its reserves, valued at around $8 billion. Additionally, Tether has launched XAUT, a gold-backed stablecoin, with each token representing one troy ounce of physical gold redeemable in Switzerland. Currently, XAUT’s issuance is equivalent to 7.7 metric tons of gold, worth $819 million—though still small compared to gold ETFs.
In an interview, Tether CEO Paolo Ardoino described the Swiss vaults as “among the most secure in the world,” though their exact locations remain undisclosed for security reasons. He explained that the company chose self-custody to avoid the roughly 50-basis-point fee charged by commercial vault operators. Ardoino argued that gold is “safer” than any national currency, especially amid concerns over US debt issues. He also noted that the continued gold accumulation by BRICS central banks has contributed to rising gold prices.
