Tether Holdings SA, the world's largest stablecoin issuer, has garnered significant attention in global financial markets by storing approximately 80 tons of gold, valued at around $8 billion, in its Swiss vault. The company, which issues the USDT stablecoin pegged nearly 1:1 to the US dollar, confirmed this holding, positioning itself as one of the largest gold holders globally, comparable to UBS Group.
Since its launch in 2014, USDT has become the most traded cryptocurrency, with a current circulation of about $159 billion. According to Tether's March report, gold bars constitute 5% of its reserves, with a market value of approximately $8 billion. CEO Paolo Ardoino emphasized that gold is perceived as safer than fiat currencies, especially amid growing concerns over U.S. debt levels.
Gold prices have surged by about 25% this year, driven by investors seeking safe-haven assets amidst geopolitical tensions and trade wars. Despite Tether's increasing gold allocation, impending regulatory frameworks in the U.S. and EU may challenge its strategy, as they propose limiting stablecoin reserves to cash or cash-equivalent instruments, excluding commodities like gold.
In addition to USDT, Tether issues a gold-backed stablecoin, XAUT, each token backed by one ounce of gold. Currently, Tether has issued XAUT tokens equivalent to 7.7 tons of gold, valued at $819 million.
