Tether CEO Paolo Ardoino recently disclosed that the company holds approximately $8 billion worth of gold in a highly secure Swiss vault, making them one of the largest private gold holders globally. This revelation came during an interview with Bloomberg News on July 7, where Ardoino emphasized the vault’s reputation as the most secure in the world.
The gold holdings represent nearly 5% of Tether’s $112 billion reserve portfolio, as confirmed by a March attestation. The value of the stash aligns with the precious metals book at UBS Group AG, a prominent bullion-dealing bank that discloses such holdings. Tether’s USDT token, which reached a market capitalization of $159 billion last month, has been experiencing significant growth, with approximately $5 billion added monthly.
Ardoino highlighted Tether’s ability to scale its gold program efficiently by self-custodying the bullion, thereby avoiding the higher fees associated with commercial vault operators. However, regulatory challenges loom large in key markets. Proposed US legislation, such as the GENIUS Act, and Europe’s Markets in Crypto-Assets (MiCA) framework, restrict the use of commodities like gold as collateral for stablecoins. If these rules come into effect and Tether seeks licenses in these jurisdictions, they may need to liquidate the gold backing USDT.
Despite regulatory hurdles, Tether’s gold-backed token, XAUT, remains a viable option for investors. XAUT is backed by 7.7 tons of gold, valued at around $819 million. While this amount is lower than that of larger exchange-traded gold funds, it is sufficient to facilitate redemptions at the Swiss vault. Ardoino believes that demand for gold-backed tokens could surge if investors lose confidence in the US fiscal system and seek alternative, on-chain assets.
In the current market context, gold prices have surged by approximately 25% in 2025, driven by trade tensions and geopolitical uncertainties. Ardoino attributed the price increase to central banks in BRICS countries actively purchasing gold. Tether continues to navigate regulatory challenges to ensure that a gold-heavy reserve does not compromise USDT’s liquidity during periods of stress.
For now, Tether maintains its gold reserves, earns yield on Treasurys, and offers a separate token directly convertible into vaulted bars, blending traditional bullion economics with blockchain settlement. As the cryptocurrency landscape evolves, Tether remains at the forefront of innovative solutions, bridging the gap between traditional assets and digital currencies.