Tether Becomes Major Gold Player With $23B Stash

A “James Bond” Vault in the Swiss Alps

The gold is stored in a repurposed Cold War-era nuclear bunker in Switzerland, a high-security facility that Ardoino described as having a “James Bond” feel.

Tether has steadily accumulated its stockpile, purchasing between one and two tons per week in recent months.

Company data indicate more than 70 tons were added over the past year alone, with about 27 tons acquired in the fourth quarter of 2025. This pace reflects profits generated from Tether’s core business issuing USDT, the dominant dollar-pegged stablecoin with a market capitalization exceeding $140 billion.

Gold prices have fueled the value of these holdings. Spot gold traded near $5,300 per ounce on January 28, up more than 65% over the past 12 months and repeatedly setting new records above $5,200.

At these levels, Tether’s 140 tons equate to roughly 4.5 million troy ounces, translating to the reported $23-24 billion range depending on daily fluctuations.

The purchases form part of reserves backing USDT while also supporting Tether Gold (XAUT), a tokenized asset directly redeemable for physical bullion. XAUT circulation has grown sharply, with reserves allocated to it amounting to about 16 tons valued at around $2.7 billion.

Hedging Against Fiat and Counterparty Risk

Ardoino framed the strategy as a deliberate hedge against fiat currency risks and counterparty exposures that have long shadowed the stablecoin sector.

By converting earnings into physical metal, Tether seeks to insulate its operations from potential debasement in traditional currencies and to provide a tangible anchor for both USDT and XAUT.

The approach mirrors moves by several central banks, particularly in emerging markets, that have increased gold allocations amid geopolitical tensions and concerns over dollar dominance.

Ardoino noted that some countries may soon issue tokenized gold instruments as alternatives to the U.S. dollar, suggesting Tether’s actions position it ahead of that curve.

The scale of Tether’s buying has drawn attention from gold market analysts. While the company’s purchases represent only a fraction of total demand, central banks and exchange-traded funds collectively absorbed more than 1,500 tons last year.

• Jefferies Financial Group analysts described Tether as a “significant new buyer” capable of supporting sustained demand.

John Reade, chief market strategist at the World Gold Council, acknowledged that Tether contributed to the rally but emphasized it as one factor among many, including robust central-bank acquisitions and investor inflows into ETFs.

Strategic Expansion into Bullion Markets

Tether’s entry into the physical gold market extends beyond mere holding. The company has hired experienced traders from major banks such as HSBC and acquired stakes in gold royalty and streaming firms, including Elemental Royalty, Metalla Royalty & Streaming, Versamet Royalties, and Gold Royalty.

These moves aim to generate additional revenue streams while maintaining a long-term position in bullion.

Ardoino indicated that Tether plans to continue buying at the current pace for at least the next few months, with quarterly reviews to determine whether to scale back.
The disclosure comes amid ongoing scrutiny of stablecoin reserves.

Tether’s quarterly attestations, conducted by BDO Italia, detail asset compositions, including gold allocations. The most recent reports show gold as a growing component, though the full 140-ton figure emerged from the executive interview rather than a formal filing.

In November 2025, S&P Global Ratings assigned a “weak” assessment to USDT, citing exposure to higher-risk assets, including physical commodities like gold, alongside traditional Treasuries.

Bridging Digital and Physical Finance

Tether’s gold strategy highlights convergence between digital assets and traditional finance. As stablecoins handle trillions in annual transactions, their reserve management increasingly influences real-world markets.

The Swiss bunker vault symbolizes this bridge, housing what executives call one of the largest private bullion hoards outside institutional or state control.

Ardoino expressed confidence in the long-term outlook, stating that steady access to physical gold strengthens the platform’s resilience. Whether Tether reduces purchases or accelerates them will depend on market conditions and internal assessments.

For now, the company stands as an unexpected heavyweight in the gold space, buying with a consistency that few other private entities can match.

The development reinforces gold’s enduring appeal as a store of value, even as it underpins innovations in tokenized finance.