Tether Stores $8 Billion in Gold in Private Swiss Vault, Positioning as Major Global Holder

Tether Holdings SA, the El Salvador-based issuer of the world's largest stablecoin, USDT, has revealed it possesses approximately $8 billion worth of gold, equivalent to nearly 80 metric tons, stored in a private vault in Switzerland. This significant accumulation positions Tether as one of the largest gold holders globally, excluding central banks and sovereign nations. The strategic move aims to diversify its reserves and enhance cost efficiency.

The company confirmed its substantial gold holdings, with the vast majority owned directly by Tether, rather than solely backing its gold-pegged tokens. According to Tether's latest financial report from March, precious metals constitute nearly 5% of its total reserves, which primarily consist of U.S. Treasuries and other cash equivalents.

Paolo Ardoino, CEO of Tether, described the private Swiss facility as "one of the most secure vaults in the world," though its exact location remains undisclosed for security reasons. Ardoino stated that the decision to establish their own vault was driven by cost considerations, aiming to avoid the high fees typically charged by commercial vault operators as their gold holdings grow.

This increased allocation to gold, however, may introduce regulatory challenges. Proposed legislation in the United States, such as the GENIUS Act, and European frameworks like MiCA, seek to restrict stablecoin reserves to cash or near-cash instruments, potentially excluding commodities like gold. If these regulations are enacted, Tether might need to adjust its holdings to comply with requirements in regulated markets.

In addition to USDT, Tether also issues XAUT, a gold-backed token where each token represents one ounce of gold and can be redeemed for physical gold directly from the Swiss vault. Ardoino views gold as a "safer asset" compared to national currencies, particularly amid rising concerns over national debt levels, aligning with a broader trend of central banks, especially within BRICS nations, increasing their gold reserves.