Tether’s Expanding Gold Strategy: From Stablecoins to Physical Reserves

A Growing Presence in the Physical Gold Market

(Image source: Tether_to)

Tether Holdings SA has been steadily increasing its exposure to physical gold, according to reporting by Bloomberg. The company now holds approximately 140 metric tons of gold, valued at around USD 23 billion, placing it among the largest known private holders globally.

This scale puts Tether in a category typically occupied by central banks and sovereign institutions, signaling a shift far beyond the conventional image of a stablecoin issuer.

A Long-Term Accumulation Approach

Rather than engaging in opportunistic trading, Tether has adopted a consistent acquisition strategy. CEO Paolo Ardoino confirmed that the firm currently purchases one to two tons of gold per week, reinforcing its commitment to gradual, long-term accumulation.

The gold is planned to be stored in a high-security former nuclear bunker in Switzerland, underscoring the company’s emphasis on asset safety and capital preservation. Ardoino has described this approach as positioning Tether in a role similar to that of a major gold-holding monetary institution.

Preparing for Shifts in the Global Monetary Order

Tether’s gold strategy is closely tied to its view of emerging geopolitical and financial tensions. Ardoino has noted that increasing global fragmentation could eventually give rise to gold-backed alternatives to the U.S. dollar system.

In anticipation of this possibility, Tether previously launched XAUT, a tokenized gold product designed to represent ownership of physical gold on-chain. This initiative allows the company to bridge traditional bullion reserves with blockchain-based financial infrastructure.

Gold Purchases on a Central Bank Scale

In 2025 alone, Tether acquired more than 70 tons of gold, a volume exceeding the annual purchases of nearly all central banks except Poland. This level of buying also surpasses the yearly inflows of most major gold ETFs, highlighting Tether’s rapidly growing influence in the bullion market.

Such figures suggest that the company is no longer a passive participant, but an increasingly significant player in global gold demand.

Beyond Storage: Expanding into Gold Trading and Mining

Tether’s ambitions extend beyond holding reserves. The firm has recruited former senior gold traders from HSBC and is reportedly planning to develop its own gold trading platform, potentially competing with established financial institutions such as JPMorgan.

At the same time, Tether has invested in several mid-sized Canadian gold mining royalty companies, extending its footprint upstream into resource production and securing closer ties to supply-side assets.

Conclusion

Tether’s deepening involvement in physical gold represents more than a hedge against volatility. It reflects a comprehensive strategy that combines stablecoins, tokenized gold, physical reserves, and traditional commodities infrastructure. As uncertainty surrounding geopolitics and monetary systems continues to rise, Tether appears to be positioning itself early for a potential reconfiguration of global finance—one where digital assets and tangible reserves increasingly converge.