Recently, Tether CEO Paolo Ardoino revealed in an exclusive interview with Reuters that Tether plans to allocate 10% to 15% of its portfolio to physical gold. This strategic shift follows Tether’s addition of 27 tons of gold in the fourth quarter, bringing its total reserves to around 130 tons.
Ardoino admitted that the company views both gold and Bitcoin as core assets, stating, "It’s hard to pick my favorite. It’s like having two children and having to decide which one is more beautiful."
Strategic Reserves
Tether’s journey into gold began at the onset of the COVID-19 pandemic in 2020 and has accelerated as geopolitical tensions have intensified. Today, the stablecoin giant’s gold reserves make it one of the largest known holders of physical gold outside of banks and sovereign nations.
According to company disclosures, Tether is purchasing gold at a pace of about 2 tons per week and plans to maintain this rate "for at least the next few months."
Reserve Structure
Tether’s gold reserves serve two main purposes: part is held as the company’s own reserves, while another portion specifically backs its gold-backed stablecoin product. Tether’s gold-backed token, XAUT, currently accounts for more than half of the entire gold-backed stablecoin market.
As of January 2026, Tether Gold (XAUT) has a total market capitalization exceeding $2.2 billion, with 520,089 XAUT tokens in circulation, each backed one-to-one by physical gold.
Market Trends
The ongoing weakness of the US dollar has created a favorable environment for gold and tokenized gold products. The US Dollar Index fell by about 9.4% last year and hit new lows at the start of 2026.
Meanwhile, gold prices soared 64% in 2025 and have risen another 22% so far this year. This trend aligns with global central bank activity—according to the World Gold Council, central banks made net purchases of 220 tons of gold in the third quarter of 2025.
Bridging Gold and Crypto Assets
Trading data from the Gate platform clearly reflects the market’s growing interest in tokenized precious metals. The table below shows the latest performance of major precious metal-related contracts on Gate:
| Contract | Real-Time Price (USD) | 24h Change | Price Range (USD) | 24h Volume |
|---|---|---|---|---|
| XAUTUSDT (Digital Gold) | $5,546.0 | +5.97% | $5,230.7–$5,637.2 | approx. $172.12M |
| XAGUSDT (Silver) | $117.88 | +3.04% | $110.67–$119.56 | approx. $81.52M |
| XAUUSDT (Gold Index Contract) | $5,537.05 | +5.80% | $5,225.46–$5,623.08 | approx. $60.19M |
| PAXGUSDT (PAX Gold) | $5,564.1 | +5.91% | $5,246.4–$5,615.9 | approx. $17.53M |
XAUTUSDT is the most actively traded tokenized gold product on Gate, with a 24-hour trading volume reaching $172 million, highlighting strong demand for these assets.
The Convergence of Crypto and Traditional Finance
Tether’s aggressive move into gold reflects a broader industry trend: the line between cryptocurrencies and traditional financial assets is increasingly blurred.
Much like central banks, Tether values gold for its liquidity and its role as a reserve asset that is "no one’s liability." To strengthen its gold market capabilities, Tether has even recruited two veteran gold traders from traditional finance giant HSBC. The company has also taken equity stakes in nearly all mid-sized, publicly listed Canadian gold royalty companies, including Elemental Royalty Corp and Metalla Royalty & Streaming Ltd, building a comprehensive gold industry supply chain.
The Rise of Tokenized Gold
Ardoino is highly optimistic about the future of gold tokenization, predicting that XAUT "very likely" will reach a market circulation of $5 billion to $10 billion by the end of 2026. He notes, "Some countries are buying gold in large quantities, and we believe these nations will soon launch tokenized gold as a currency form to compete with the US dollar."
While gold-backed stablecoins currently represent only a small fraction of the $500 billion gold ETF market, their growth potential is significant.
Investment Logic and Risks
Tether’s investment strategy is essentially a diversified hedge. CEO Ardoino has been clear: "The world is not optimistic right now. Gold is hitting new all-time highs every day. Why? Because everyone is afraid." However, this approach carries risks. In November 2025, S&P Global Ratings downgraded USDT’s stability rating to "constrained," citing increased exposure to higher-risk assets such as Bitcoin and gold in its reserves.
Even so, Ardoino remains steadfast in defending the company’s portfolio: "We are proud to withstand your criticism. We don’t hold toxic assets."
John Reade, Chief Market Strategist at the World Gold Council, commented, "It’s really fascinating to see one of the major players in the crypto world treat gold as a primary hedge against dollar depreciation." Tether’s growing gold reserves are fueling the expansion of the tokenized gold market, and the $172 million daily trading volume of XAUTUSDT on Gate clearly demonstrates the market’s enthusiastic response to this convergence trend.
On the Gate platform, the XAUT token—representing one ounce of physical gold—is trading at $5,546.0, closely tracking the spot price of gold. The intersection of traditional precious metals and blockchain technology is no longer a distant vision; it’s already unfolding on every trader’s account interface.
