Tether, the stablecoin giant, backs nearly 5% of its reserves with physical gold and stores around 80 tonnes in a private vault in Switzerland.
According to Bloomberg, Tether Holdings SA, issuer of the globally dominant stablecoin USDT, holds an 8 billion USD gold stash at a secret location in Switzerland. With approximately 80 tonnes of precious metal, the company ranks among the world’s largest private gold holders outside of states and banks.
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Gold as a strategic reserve component
According to recent data, gold accounts for nearly 5% of Tether’s total reserves (around USD 112 billion). In an interview, CEO Paolo Ardoino described the vault as “the most secure vault in the world.” Storing the gold independently in a company-owned vault reduces costs compared to third-party services and increases control over the holdings.
This places Tether among major global financial players - the firm’s gold holdings are on par with UBS - and ahead of many other private institutions. The move is seen as a deliberate diversification strategy: in light of rising sovereign debt, gold is intended to serve as a stable reserve asset.
Regulatory reactions and challenges
With new regulations on the horizon, such as the GENIUS Act in the US and MiCA in the EU, which could exclude precious metals as reserve assets, Tether’s strategy is under scrutiny. Should the company seek official approval as a stablecoin issuer in the EU, it may be required to liquidate its gold holdings - or reserve them exclusively for the XAUT token, which is directly backed by physical gold.
Tether already operates the gold-backed XAUT token, which is backed by approximately 7.7 tonnes of physical gold - unaffected by regulatory restrictions. The remaining 72 tonnes or so are primarily designated as reserves for USDT.
Tether’s gold strategy sends a clear message to the industry: reserve transparency and diversification are becoming competitive factors for stablecoin issuers. While many providers rely solely on short-term US Treasuries or cash, Tether is taking a different approach by holding physical gold - aiming to create reserve assets independent of currency and interest rate fluctuations.
