Tether Holds 80 Tons of Gold Worth $8 Billion in a Secret Vault

Key Insights

• Tether holds 80 tons of gold worth $8 billion

• Tether's gold is kept in a secret vault in Switzerland

Tether Holds Gold worth $8 billion

Tether, the company behind USDT, is quietly accumulating gold in large quantities. According to Bloomberg, the crypto firm now holds nearly 80 tons of gold, worth about $8 billion. 

That puts it among the largest private gold holders globally outside of banks or governments. This gold isn't scattered in rented vaults.

Tether has its secure vault in Switzerland. CEO Paolo Ardoino claims it's 

"the most secure vault in the world."

The company won't reveal the location or when it was built for obvious reasons. Gold now makes up nearly 5% of Tether's reserves. Most of Tether's income comes from investing the dollars it receives for USDT in US Treasuries and other low-risk assets.

Also Read: U.S. Secret Service seizes $400 million in crypto

But now, gold is part of the mix. Tether says it chose to build its vault to save on custody fees. If its gold-backed token XAUT grows big, say to $100 billion, then that could save millions.

Tether's XAUT token is already backed 1:1 by ounces of gold, redeemable for real bullion in Switzerland. So far, the company has issued $819 million worth of about 7.7 tons of gold. Still, that's tiny compared to major gold ETFs. The biggest holds nearly 950 tons.

Why gold now?

Gold is up 25% this year. Central banks, especially BRICS nations, are buying heavily. Investors are hedging against geopolitical risks and the growing US debt.

Gold price analysis shows a declining trend with current trading at 3,304.595 USD, a drop of 0.95%. The RSI Divergence Indicator suggests bearish sentiment, while trading volume remains at 439.12K.

Ardoino believes people will eventually favour gold over national currencies. If trust in the US dollar weakens, gold might become the safer bet.

But there's a catch.

New rules in the US and EU may ban gold as a reserve for stablecoins. These laws push for assets like cash or short-term government bonds instead.

If Tether wants to operate under these rules, it may need to sell its gold or keep it outside regulated markets. Either way, Tether's $8 billion gold bet marks a serious shift.

It's not just about stablecoins anymore; it's about becoming a global financial force with real-world assets.