Tether Emerges as a Major Player in the Global Gold Market, Amassing 140 Tons of Gold

Tether Holdings, a prominent player in the cryptocurrency world, has been transforming the gold market by accumulating a substantial amount of gold over the past year. With about 140 tons of gold in its reserves, Tether is positioning itself as a significant competitor in gold trading, aiming to rival traditional banks.

Key Takeaways

Tether Holdings has accumulated approximately 140 tons of gold, valued at around $23 billion.
The company purchased over 70 tons of gold last year for its reserves and its gold-backed stablecoin, XAUT.
Tether stores its gold in a secure former nuclear bunker in Switzerland.
Tether plans to continue increasing its gold holdings and aims to provide stable access to this precious metal.

Tether Gold

Tether's Expansion into the Gold Market

In recent developments, Tether Holdings has made a significant impact on the growing gold market by stockpiling a vast amount of gold over the last year. According to CEO Paolo Ardoino, the firm currently holds around 140 tons of gold.

During an interview with Bloomberg, Ardoino indicated that Tether intends to keep generating substantial profits from these holdings and is competing with traditional banks in the bullion trading space. “We are soon becoming basically one of the biggest, let’s say, gold central banks in the world,” he explained.

Tether’s Aggressive Gold Accumulation

According to a Wednesday Bloomberg report, Tether has acquired over 70 tons of gold in the past year to bolster its reserves and support its gold-backed stablecoin, XAUT. This accumulation of gold surpasses that of the three largest exchange-traded funds (ETFs). With 140 tons of gold, Tether's holdings are now valued at approximately $23 billion, making it one of the largest known treasuries outside of central banks, ETFs, and private banks.

Ardoino highlighted that the firm is accumulating more than a ton of gold each week. “And it’s only growing,” he added, noting that Tether plans to continue this trend “definitely for the next few months.” He mentioned they would make decisions based on market conditions, assessing their gold demand quarterly.

Tether's Gold Storage

Unique Storage Solutions for Gold

Tether is taking extraordinary measures to store its considerable gold assets. The company has opted to keep its gold in a former nuclear bunker in Switzerland, which is protected by multiple layers of thick steel doors. Ardoino described the facility as “a James Bond kind of place; it’s crazy.”

In addition to storage, Tether is looking to actively trade the precious metal, aiming to compete with major Wall Street institutions like JPMorgan Chase & Co. and HSBC. “Our goal is to have a steady, stable, long-term access to gold,” Ardoino stated.

In response to the growing interest in its gold holdings, Tether's gold-backed stablecoin, XAUT, rose by 3.99% in the last 24 hours, according to CoinMarketCap data. This uptick extends its gains for the week (+8.88%) and the month (+18.06%), reflecting a broader strength in the gold market.

Tether’s gold holdings now exceed those of several countries, including Greece and Australia, placing it among the top 30 global holders of gold.