Tether CEO: Has accumulated 140 tons of gold reserves and will become the gold central bank of the post-era

Tether CEO reveals to Bloomberg that the company holds 140 tons of gold (worth $23.3 billion), stored in a Swiss nuclear bunker, with plans to buy 1-2 tons weekly. They have recruited HSBC traders to enter the arbitrage market. The gold stablecoin XAUT has a market cap of $2.32 billion, accounting for 50% of the market. Funds come from USDT treasury yields, and a compliant version USAT has been launched.

Sovereign-level Strategic Reserves of 140 Tons of Gold

The world’s largest stablecoin issuer, Tether, is actively transforming and positioning itself as a key player in gold. Tether CEO Paolo Ardoino disclosed to Bloomberg yesterday that the company’s current gold holdings are close to 140 tons. At the current price of over $5,200 per ounce, the total value is approximately $23.3 billion. This scale rivals holdings of sovereign nations, surpassing Portugal (125 tons), Saudi Arabia (one-third of 323 tons), and several other countries’ official gold reserves.

Ardoino claims that this massive gold reserve is stored in a Swiss nuclear bunker built during the Cold War, offering high security. Switzerland is known for its neutrality and strict asset protection laws, with many countries’ gold reserves and wealthy assets stored there. The bunker is designed to withstand nuclear attacks and conventional bombings, equipped with multiple security systems including biometrics, armed guards, and 24/7 surveillance. Such military-grade security underscores Tether’s emphasis on its gold reserves.

As geopolitical rivals may introduce gold-backed currencies to challenge the dollar’s dominance, Ardoino expects Tether to become one of the world’s largest gold central banks in the post-dollar era. This positioning is not wishful thinking but based on deep insights into changes in the international monetary system. Russia, China, and other countries continue to increase gold holdings and reduce dollar assets. BRICS countries are exploring a common gold-backed currency. If dollar hegemony truly wavers, gold will once again become a core medium of international settlement.

Recent reports from Tether reveal that in Q4 2025, they purchased about 27 tons of gold. Coupled with ongoing purchases this year, their holdings are now comparable to sovereign holdings. Ardoino believes that, logically, gold is a safer asset than any national currency. Therefore, the company plans to maintain a pace of 1-2 tons of weekly gold purchases in the coming months, continuously reinvesting profits into this strategy.

Based on an average weekly purchase of 1.5 tons, Tether will accumulate about 78 tons of gold annually, valued at approximately $13 billion at current prices. This continuous, large-scale buying makes Tether a significant buyer in the global gold market, potentially influencing gold prices. More importantly, this strategic accumulation demonstrates Tether’s cautious attitude toward the future of the dollar system and prepares for possible monetary system restructuring.

Recruitment of HSBC Traders to Enter the Arbitrage Market

Beyond passive asset reserves, Tether plans to emulate JPMorgan and HSBC by directly engaging in gold trading. Ardoino disclosed that Tether is evaluating the market and devising strategies to actively trade its gold reserves to capture arbitrage opportunities and generate additional profits. To achieve this, Tether has recently recruited two senior gold traders from HSBC to lead the expansion into precious metals trading.

HSBC is one of the world’s largest gold trading banks, with its London metals trading division handling billions of dollars in gold transactions daily. Recruiting experienced traders from HSBC signals Tether’s ambition not just to “hold gold,” but to “trade gold.” The gold market offers various arbitrage opportunities: price differences between London and New York markets, basis spreads between physical gold and futures, and premiums among different gold products (bars, coins, ETFs). Professional traders can profit from these spreads through rapid execution and cross-market operations.

This expansion will transform Tether from a “passive holder” into an “active participant.” When Tether begins large-scale trading on major markets like LBMA and CME, its market influence will further increase. More importantly, the profits generated from trading can be used to support USDT yields or repurchase XAUT, creating a positive feedback loop.

While actively accumulating physical gold, Tether is also extending its reach into upstream industries. As the precious metals market experiences its strongest rally since the 1970s, Tether is actively expanding its equity investments, acquiring shares in Canadian-listed companies like Elemental Altus Royalties and Gold Royalty Corp. These companies hold rights to gold royalties, sharing revenue proportionally when mines produce gold. This investment model allows Tether to indirectly participate in gold production, further deepening its position in the gold industry chain.

XAUT Dominates the Gold Stablecoin Market

Tether’s expansion funds mainly come from its USDT stablecoin. According to The Block, USDT’s circulating supply exceeds $186 billion, maintaining a dominant market share of about 60% in the global stablecoin market. By investing USDT reserves in US Treasuries and other assets, Tether has amassed substantial capital for gold reinvestment.

With current US short-term treasury yields around 4.5%, the $186 billion reserves generate approximately $8.37 billion in annual interest income. Part of this income is used for company operations, part for strategic investments like gold purchases, and the rest accumulates as shareholder equity. This “passive income” business model makes Tether one of the most profitable companies in the crypto industry, with profit margins possibly exceeding 90%.

Additionally, CoinMarketCap data shows that Tether Gold (XAUT), the gold-backed stablecoin issued by Tether, has a market cap of $2.32 billion. Although this is a decline from over 60% market share projected for the end of 2025, it still accounts for more than 50% of the gold stablecoin market, remaining the leader. Each XAUT token represents one troy ounce of LBMA-certified gold, allowing holders to own physical gold while enjoying blockchain benefits (24/7 trading, instant settlement, divisibility).

The success of XAUT demonstrates market demand for tokenized gold. Investors seek the hedging properties of gold without the hassle and high costs of physical storage. XAUT perfectly meets this need, becoming a common collateral and hedge in DeFi protocols. As Tether continues to increase its physical gold holdings, XAUT’s reserve backing will become even more solid, further consolidating its market leadership.

Launching USAT to Enter the US Regulatory Market

Tether is expanding beyond gold into the stablecoin market with a new product. The company recently launched USAT (USA Tether), a compliant stablecoin specifically designed for the US market, fully adhering to the GENIUS Act regulations. This marks Tether’s first product targeting specific national regulations, signaling a strategic shift from “regulatory gray area” to “active compliance.”

USAT is issued by Anchorage Digital Bank, a federally chartered bank approved by OCC to issue payment stablecoins. Through cooperation with a regulated bank, Tether addresses longstanding issues of “reserve transparency” and “auditing gaps.” USAT will undergo regular audits according to banking standards, with reserves held in FDIC-insured US banks. This compliance is highly attractive to US institutional investors.

The launch of USAT is also a defensive move against competitors. Fidelity, PayPal, Circle, and others are launching or planning to launch compliant stablecoins to capture the US institutional market. If Tether does not follow suit, it risks losing market share in the most important market. By operating both USDT (for global markets) and USAT (for the US), Tether implements a “two-pronged” strategic approach.