Tether Stores $8 Billion Worth of Gold in Secret Swiss Vault
Tether, one of the largest stablecoin issuers in the world, now holds nearly 80 tons of gold worth approximately $8 billion. This gold is stored in a secret vault in Switzerland referred to by Tether's CEO, Paolo Ardoino, as "the safest vault in the world." With this amount, Tether becomes one of the largest non-governmental gold holders in the world, comparable to major banks like UBS.
This strategy is implemented by Tether to diversify its reserves and reduce long-term storage costs. Owning its own vault allows them to save on custodian fees that are typically charged by third parties. Additionally, gold is considered a safe hedge asset amid global economic uncertainty.
However, regulations in some regions such as the US and the European Union are starting to restrict the types of assets that can be used to back stablecoins, which could potentially affect Tether's use of gold in the future. But for now, Tether's move demonstrates innovation and courage in managing its asset reserves independently and securely.