Tether Becomes Largest Non-Sovereign Gold Holder

TLDR

• Tether holds over 140 tons of gold, valued at $23 billion.
• CEO Paolo Ardoino aims for Tether to act as a gold bank.
• Tether’s gold reserves enhance the stability of USDT and XAUT.

Tether, the company known for its USDT stablecoin, has amassed over 140 tons of physical gold. This significant accumulation positions Tether as the largest non-sovereign holder of gold globally, marking a notable shift in the gold market landscape. Currently valued at approximately $23 billion, the gold is securely stored in a Swiss nuclear bunker. This stockpile surpasses the gold reserves of some nations, including Greece, Qatar, and Australia.

The CEO of Tether, Paolo Ardoino, leads the company’s gold acquisition strategy. Tether purchases gold directly from Swiss refineries and other global institutions. The company has been buying gold at a rate of 1 to 2 tons weekly, with a notable increase of over 70 tons purchased in 2025 alone, including 27 tons during the last quarter of the year.

CEO Paolo Ardoino’s Strategic Vision

Paolo Ardoino has expressed his ambition to see Tether become akin to a “gold central bank.” Under his leadership, the Tether Gold Investment Fund is now comparable to sovereign gold holders. Ardoino highlighted the importance of this scale, noting that it carries significant responsibility. He affirmed Tether’s commitment to continuing gold purchases in the coming months, maintaining a rate exceeding one ton per week.

In a statement to Bloomberg, Ardoino elaborated on Tether’s strategic goal: “We will soon become one of the largest ‘gold central banks’ in the world, so to speak.” This insight reflects his broader vision of positioning Tether alongside sovereign entities when it comes to gold holdings.

Impact on USDT and XAUT Stability

Tether’s accumulation of gold primarily bolsters the confidence in its stablecoin USDT and the Tether Gold token, XAUT. These assets benefit from Tether’s diversification strategy, wherein gold serves as a hedge for the USDT’s market cap, which exceeds $100 billion. Gold reserves underpin a one-to-one backing for the XAUT token, enhancing its credibility.

Paolo Ardoino stated in a company release that operating at this scale positions Tether’s gold fund alongside sovereign holders. He emphasized that the reserves fully back the Tether Gold token, with Tether reporting $15 billion in profits for 2025 partly due to such holdings. This diversification, while indirectly related, also supports cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).

Ongoing Gold Acquisition and Market Comparisons

Tether’s strategy mirrors that of national banks with aggressive gold accumulation. For example, in 2025, Poland also increased its gold reserves by purchasing 102 tons. Tether’s current gold holdings reaffirm its status alongside sovereign nations and exceed its previous acquisition of over $100 billion in Treasury bill holdings.

Despite its substantial gold reserves, Tether has not disclosed any new funding allocations or grants for these purchases. On-chain data does not show specific changes in total value locked or staking flows, as these gold reserves are held off-chain in secure Swiss vaults, separate from decentralized finance protocols.