Tether Hires HSBC Traders to Expand $12B Gold Reserves
Tether has appointed senior precious metals traders from HSBC to expand its $12 billion gold reserves and diversify its $183 billion USDT asset base. Former HSBC Global Head of Metals Trading Vincent Domien and ex-Precious Metals Origination EMEA head Mathew O’Neill will oversee Tether gold reserves management, trading operations, liquidity, and storage efficiency. Tether is acquiring physical gold from Swiss refiners and investing in gold royalty and mining companies to strengthen its stablecoin collateral. As of September 2025, Tether gold reserves total more than $12 billion, while USDT market capitalization exceeds $183 billion, with $17 billion in Q3 supply growth and $6.5 billion in excess reserves. Gold prices topping $4,100 per ounce amid geopolitical uncertainty have driven demand for on-chain safe-haven assets. By tapping HSBC’s institutional expertise, Tether aims to launch new gold-backed instruments, further cementing its position in both the commodities and crypto markets.
Bullish
Tether’s move to bolster its gold reserves with HSBC traders enhances USDT’s asset backing and credibility. In the short term, improved liquidity and storage efficiency can reduce redemption risk and support the USDT peg. Long term, diversifying into physical gold and launching gold-backed instruments reinforces confidence in Tether’s stablecoin model, potentially attracting more capital and strengthening market stability.