Tether Holdings has become one of the world’s largest holders of physical gold, accumulating roughly 140 tons of bullion worth about $23 billion at current market prices. The reserve, disclosed by CEO Paolo Ardoino in an interview with Bloomberg, places the stablecoin issuer among the largest known gold holders outside central banks, exchange-traded funds, and private bullion banks.
The accumulation reflects a strategic expansion of Tether’s reserve management as it seeks to diversify beyond US Treasuries and cash equivalents. Ardoino said the company has been purchasing more than one ton of gold per week, with much of the metal backing both corporate reserves and Tether’s gold-backed stablecoin, XAUT. The pace of buying over the past year reportedly exceeded the net inflows of the three largest gold ETFs combined, underscoring the scale of the operation.
Gold Strategy and Institutional Positioning
Tether’s gold is stored in a high-security former nuclear bunker in Switzerland, a facility designed for long-term preservation and guarded by multiple layers of physical protection. Ardoino described the vault as a strategic choice aimed at ensuring uninterrupted access to bullion regardless of geopolitical or market stress. The company views physical gold as a long-duration hedge and a complement to its digital dollar operations.
Beyond holding gold, Tether is increasingly active in bullion trading, placing it in direct competition with major banks such as JPMorgan and HSBC that dominate the institutional gold market. Ardoino said the firm’s objective is to secure stable, long-term access to gold while generating returns from active management. The approach mirrors how large financial institutions manage commodity reserves, marking a shift in how crypto-native firms participate in traditional asset markets.
Macro Context and Competitive Implications
Tether’s gold accumulation comes as global demand for bullion rises amid persistent inflation concerns, central bank buying, and growing interest in non-sovereign stores of value. Gold prices have climbed sharply over the past year, benefiting reserve holders and reinforcing the metal’s role in portfolio diversification. For Tether, the strategy provides balance sheet resilience while strengthening the credibility of its asset-backed products.
The move also highlights the growing overlap between digital asset firms and traditional financial institutions. With Tether already ranking among the world’s largest holders of US Treasuries, its gold position reinforces its role as a macro liquidity provider rather than a narrowly defined stablecoin issuer. As competition intensifies in both stablecoins and reserve-backed digital assets, Tether’s scale in physical commodities may prove to be a lasting structural advantage.
