In a remarkable pivot from its roots in the cryptocurrency world, Tether Holdings SA, the issuer of the world's largest stablecoin USDT, has quietly built one of the largest non-sovereign gold hoards on the planet. Valued at approximately $23 billion, Tether's physical gold reserves now rival those held by some central banks, positioning the company as a significant force in the traditional gold market.
A James Bond-Style Vault in the Swiss Alps
Tether's gold is stored in a highly secure facility: a repurposed nuclear bunker in Switzerland, a remnant of the Cold War era. Switzerland boasts around 370,000 such bunkers, many of which have fallen into disuse, but Tether has transformed one into a fortress-like storage site.
CEO Paolo Ardoino has vividly described the location as "a James Bond kind of place," featuring multiple layers of thick steel doors and enhanced security measures.
This setup ensures the utmost protection for the company's burgeoning precious metal assets, underscoring Tether's commitment to safeguarding its reserves amid global economic uncertainties.
Scale of the Reserves: 140 Tons and Counting
As of recent reports, Tether holds about 140 tons of physical gold, making it the largest known non-governmental holder of the metal—surpassing even major exchange-traded funds (ETFs) and commercial banks.
This hoard is valued at roughly $23 billion, comparable to the reserves of central banks in countries like South Korea, Greece, and Hungary. In 2025 alone, Tether acquired over 70 tons of gold, outpacing the purchases of nearly every central bank on Earth, with only Poland reporting higher volumes.
Deliveries to the bunker continue at a brisk pace, with one to two tons of gold bars arriving weekly. Ardoino has confirmed that this acquisition rate will persist for at least the next several months, with strategies reviewed quarterly to adapt to market conditions.
Beyond Hoarding: Active Trading and Market Ambitions
Tether isn't content with merely accumulating gold; the company is gearing up to actively trade it, challenging established giants like JPMorgan and HSBC. To bolster this effort, Tether has recruited top traders from HSBC, aiming to build what Ardoino calls "the best gold trading platform in the world." Additionally, the firm is investing in the mining sector by acquiring stakes in royalty companies, further entrenching its influence in the gold ecosystem.
Analysts from Jefferies Financial Group and the World Gold Council have noted Tether's role in driving the recent gold price rally, attributing part of the market's surge to the company's aggressive buying.
Ardoino has positioned Tether as akin to a central bank in the crypto space, diversifying into gold as a hedge against fiat currency devaluation and eroding trust in U.S. government debt.
Ties to Stablecoins: Backing USDT and XAUT
This gold accumulation isn't isolated from Tether's core business. The reserves underpin the stability of USDT, the dominant stablecoin, and directly back Tether Gold (XAUT), a tokenized gold asset whose market capitalization has reached $2.6 billion. Overall, the capitalization of gold-backed stablecoins has exceeded $4 billion, reflecting growing investor interest in digitized precious metals. By blending traditional assets like gold with blockchain technology, Tether is bridging the gap between conventional finance and cryptocurrencies.
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Implications for the Future
Tether's foray into gold marks a bold evolution for a company once viewed primarily as a crypto entity. With monthly purchases potentially reaching up to $1 billion, Tether is not just a buyer but a systemic player reshaping the bullion market. As global economic tensions persist, this strategy could inspire other fintech firms to diversify into hard assets, blurring the lines between digital and physical wealth. However, it also raises questions about transparency and regulation in an industry still navigating its maturity.
