Tether Stores $8B Gold in Swiss Vault to Boost USDT Backing
Tether has consolidated 80 metric tons of gold, valued at roughly $8 billion, into a private Swiss vault to reduce custody fees and reinforce its USDT stablecoin reserves. CEO Paolo Ardoino called the in-house facility “the most secure in the world” and expects lower storage costs as the Tether Gold (XAUT) token grows. Since March, Tether’s gold holdings rose from 7.7 tons to 80 tons, now representing under 5% of USDT’s $160 billion market cap. The company also holds about $100 billion in U.S. Treasury bonds alongside cash equivalents.
This move diversifies Tether’s collateral, mirroring central bank bullion strategies and responding to heightened institutional demand for safe-haven assets. Proposed U.S. stablecoin regulations, like the GENIUS Act, may force divestment of non-cash assets such as gold or block market access for non-compliant issuers. With the stablecoin sector’s total supply at $255.3 billion—USDT at over 62% and USDC at around 24%—Tether’s gold strategy underscores its push for asset diversification amid rising regulatory and geopolitical pressures.
Neutral
Tether’s move to a private Swiss vault strengthens USDT’s reserve diversification and lowers custody fees, enhancing operational stability. In the short term, the gold allocation—under 5% of USDT’s reserves—offers limited impact on market confidence or trading volumes. Over the long term, consolidating gold in-house and avoiding external fees may improve cost efficiency and issuer credibility, supporting USDT’s peg stability. Despite regulatory risks under proposed U.S. laws targeting non-cash assets, Tether’s diversified collateral strategy likely sustains market confidence without triggering price shifts.