Tether Chief Technology Officer Paolo Ardoino said that the company expects to become a dominant holder and active trader of gold reserves as foreign rival powers pursue alternatives to the U.S. dollar, a shift he described as transforming Tether into a de facto “gold central bank” in a post-dollar world.
What Happened: Tether’s Gold Strategy
Ardoino told Bloomberg that Tether plans to expand its role in the global gold market as geopolitical rivals to the United States are likely to develop gold-backed monetary alternatives to the dollar.
He said the company will continue reinvesting significant earnings into physical gold and presently acquires about one to two tons per week.
The firm has accumulated nearly 140 tons of gold, stored in a fortified Swiss facility, a reserve reportedly larger than any outside central banks, exchange-traded funds and commercial banks.
With precious metal prices rallying, Tether’s holdings are valued at more than $23.3 billion, with gold trading near $5,234 per troy ounce.
Tether is preparing to enter the gold trading market with active strategies intended to capture arbitrage opportunities rather than merely hold physical reserves. The company has hired senior traders from major banks to lead its bullion trading efforts and is assessing market structures and potential approaches.
Tether has also increased its exposure to equities through stakes in Canadian firms tied to precious metals, a move aligned with metals’ strongest rally since the 1970s.
Why It Matters: Stablecoin And Market Influence
Tether’s flagship product, USDT, remains the largest stablecoin with more than $186 billion in circulation, underpinning the company’s ability to reinvest in assets such as gold to expand influence and profit.
The company also issues Tether Gold(XAUT), which holds roughly half of the gold-backed stablecoin market with about $2.62 billion in market capitalization.
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