What happened?
Tether has built its own vault in Switzerland, holding nearly 80 tons of gold valued at approximately $8 billion, becoming one of the world's largest private gold holders, raising significant concerns about its reserve structure and compliance risks.
Tether's gold reserves account for nearly 5% of its total assets, a scale that has caught up with UBS. In addition to USDT, Tether has also launched the XAUT token, which is pegged to physical gold at a 1:1 ratio, as an on-chain hedging option.
Regulatory frameworks in Europe and the U.S. exclude gold as a reserve asset for stablecoins, so if Tether seeks compliance in the future, it may need to sell its gold reserves.
Tether holds nearly 80 tons of gold in Switzerland.
As the crypto market faces a wave of stablecoin regulation, Tether, the issuer of the stablecoin USDT valued at $159 billion, is quietly building a gold vault in Switzerland valued at approximately $8 billion. This not only makes Tether one of the largest private gold holders in the world but also raises concerns about its asset reserve structure and compliance strategy.
Tether CEO Paolo Ardoino recently revealed in an interview with Bloomberg that Tether has stored nearly 80 tons of gold in Switzerland, with a total value of about $8 billion. The specific location of this vault has not been disclosed for security reasons, and Tether has also not revealed when the vault was established. However, Ardoino described it as 'the safest vault in the world.'
Unlike most precious metal traders or ETF platforms that rely on third-party vault custodians, Tether has chosen to store gold assets in-house, mainly for cost considerations. Traditional precious metal custody services typically charge annual fees of up to 0.5%. If Tether's gold stablecoin 'XAUT' expands its circulation scale to $100 billion in the future, building its own vault could significantly reduce costs and increase profit margins.
Gold reserves account for nearly 5%, compared to UBS's holdings.
According to the asset audit report published by Tether in March 2024, gold currently accounts for nearly 5% of its total reserve portfolio. The company's existing $8 billion gold stock is comparable to the total value of precious metals held by UBS Group AG, which is one of the few international banks that disclose precious metal holdings in quarterly reports.
This also means that Tether has become one of the entities holding the largest gold reserves outside of banks and sovereign nations.
Currently, the two main products issued by Tether are USDT and XAUT, with USDT pegged 1:1 to the U.S. dollar, primarily supported by cash, short-term U.S. Treasury securities, and other assets. According to June data, its market value has reached $159 billion, growing nearly $5 billion monthly.
Each XAUT token corresponds to one ounce of physical gold, with approximately 7.7 tons of gold (valued at about $819 million) currently issued, which can be directly exchanged for gold bars in Switzerland.
Unlike the high liquidity and fiat regulatory compatibility required for USDT, XAUT is a digital version closer to traditional commodity assets. Paolo Ardoino pointed out that if the market loses confidence in the U.S. fiscal outlook, tokens like XAUT, which combine blockchain transparency with support from physical assets, are expected to become a new option for capital hedging.
With stablecoin regulations coming, will gold assets be excluded?
In fact, Tether's proactive layout in gold reserves may also face challenges from regulatory agencies in Europe and the U.S.
The 'GENIUS Act' being advanced in the U.S. and the 'MiCA Crypto Asset Market Regulation' that will officially take effect in the EU from 2024 both impose clear restrictions on the sources of asset reserves for stablecoins, allowing only cash and cash equivalents (such as short-term government bonds) as collateral assets, while gold and other commodity-type assets are excluded.
If Tether seeks to obtain legal issuance qualifications in the EU or the U.S. in the future, while it may retain the gold stock tied to XAUT, it may still have to sell the gold serving as reserves for USDT. Currently, within six months of MiCA's implementation, 53 crypto companies have been licensed, but Tether is not among them, reflecting a gap in its asset structure and regulatory framework.
It must be said that since 2025, the spot gold price has risen by about 25%. Amid geopolitical tensions, escalating global trade frictions, and the trend of central banks de-dollarizing, investors and central banks around the world are increasing their gold assets as a hedging tool and an alternative to the dollar.
However, can Tether's cross-asset reserve strategy withstand stricter regulatory scrutiny in the future? Or can it truly become a new market anchor of stability when confidence in U.S. Treasuries wavers? This remains to be seen in the unfolding global financial and geopolitical landscape.
Source: CryptoSlate, Bloomberg
More reports
Digital gold has been upgraded! Tether has brought gold onto the blockchain, allowing gold to move on-chain?
Not just buying coins or mining! Tether dives into the Bitcoin ecosystem, creating a 'from head to toe' comprehensive crypto empire?
