Crypto firm Tether said to have $8B worth of gold stockpiled in Swiss vault

[Ben Graham]

Tether Holdings SA, issuer of the world’s largest stablecoin, is said to have stockpiled $8 billion worth of gold in a secure vault in Switzerland, according to a Bloomberg report.

In a statement to Bloomberg this week, the El Salvador-based crypto firm confirmed that it holds around 80 metric tons of gold, the majority of which are owned outright by the company. The amount, it adds, makes Tether “one of the largest gold holders in the world outside of banks and nation states,” comparable to that of UBS Group.

Tether is the issuer of the USDT stablecoin, a cryptocurrency whose value is pegged to the USD on a near one-to-one basis. The company receives dollars in return for the tokens it issues and makes money from that collateral by investing in assets like gold.

Since its launch in 2014, USDT has grown to become the largest cryptocurrency by trading volume, with about $159 billion currently in circulation. According to the company’s latest report issued in March, bullion accounts for 5% its reserves, with a market value of approximately $8 billion.

In an interview with Bloomberg, Tether chief executive Paolo Ardoino described its gold vault as “one of the most secure in the world,” though he did not provide further details aside from a generic location (Switzerland), citing security reasons.

Explaining the company’s strategy to accumulate gold, Ardoino said he views gold a “safer asset” than any national currency, including the US dollar, particularly when there are rising concerns over America’s debt levels. He went on to say that central banks within the BRICS nations have been stockpiling bullion, which contributed to rising gold values.

However, its growing allocation to gold could raise regulatory challenges due to the soaring popularity of stablecoins in recent years. Draft legislation in the US such as the GENIUS Act, and European frameworks like MiCA, would restrict stablecoin reserves to cash or near‑cash instruments – excluding commodities like gold. If these rules take effect, Tether may need to adjust its holdings to maintain compliance in regulated markets.

In addition to USDT, the company also issues the XAUT stablecoin, which is backed one-to-one by an ounce of gold and can be redeemed for physical gold, collected directly in Switzerland. To date, it has issued tokens equivalent to 7.7 tons of gold or $819 million, a paltry amount relative to the more liquid gold-backed exchange-traded funds.

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Ardoino also noted that the company opted to self‑custody its bullion to avoid the costs associated with commercial vault operators, which typically charge around 50 basis points. If Tether’s gold token were to grow to $100 billion in circulation, “it’s a lot of money to pay”, he said.

Gold prices have rallied about 25% this year, as investors reach for safe havens to hedge against geopolitical tensions and an expanding trade war. Strong demand from central banks and sovereign institutions has also supported bullion’s rise.