Tether Holdings SA, the company behind the world’s largest stablecoin, has reportedly accumulated $8 billion worth of gold, securely stored in a Swiss vault, according to a recent report from Bloomberg.
The El Salvador-headquartered crypto firm confirmed it currently holds around 80 metric tons of gold, most of which it owns outright. Tether says this makes it “one of the largest gold holders globally outside of central banks and governments,” drawing comparisons to major financial institutions like UBS Group.
Tether is best known as the issuer of USDT, a stablecoin pegged closely to the US dollar. The company earns revenue by accepting dollars in exchange for USDT and investing those reserves in various assets, including gold.
Since its launch in 2014, USDT has grown to dominate the crypto market in terms of trading volume, with about $159 billion currently in circulation. Gold now represents roughly 5% of Tether’s total reserves, valued at approximately $8 billion as of its March 2025 report.
In an interview with Bloomberg, Tether CEO Paolo Ardoino described the vault as “one of the most secure in the world,” though he refrained from sharing specific details due to security concerns, only stating it is located in Switzerland.
Ardoino said the company views gold as a more stable and reliable asset than any fiat currency—especially amid growing concerns over US debt levels. He noted that central banks in BRICS nations have been actively increasing their gold reserves, which he believes has been a key factor in the recent surge in gold prices.
However, Tether’s rising allocation to gold could face regulatory hurdles. Proposed US laws like the GENIUS Act and the EU’s MiCA framework could limit stablecoin reserves to only cash or near-cash instruments—excluding commodities such as gold. Should these rules be enforced, Tether may be required to revise its reserve strategy to stay compliant in regulated markets.
Beyond USDT, Tether also issues the XAUT token, a gold-backed stablecoin redeemable for physical gold in Switzerland. So far, the company has issued tokens backed by 7.7 tons of gold, valued at approximately $819 million—a modest amount compared to traditional gold-backed ETFs.
Ardoino emphasized that Tether self-custodies its bullion to avoid hefty storage fees charged by commercial vault operators, which can average around 0.5% annually. He noted that if XAUT were to scale up to $100 billion in assets, “that’s a lot of money to pay in fees.”
Gold has surged around 25% in 2025 as investors seek safe-haven assets amid rising geopolitical tensions and a growing trade conflict. Continued demand from central banks and institutional buyers has further fueled the rally.