2026-01-28 14:04:00
Tether has emerged as one of the world’s largest private gold holders with approximately 140 tons of physical bullion worth around $24 billion, according to new reports. The stablecoin issuer has been quietly accumulating 1-2 tons per week and storing the metal in a former Swiss nuclear fallout bunker.
To put that in perspective: 140 tons equals roughly 4.5 million troy ounces. That’s more gold than many central banks hold. For context, Portugal holds about 382 tons, while countries like Saudi Arabia (323 tons) and the UK (310 tons) have about double what the stablecoin holder has. Tether’s hoard would rank it among the top 40 official gold reserves globally if it were a sovereign nation.
The accumulation has positioned Tether as one of the biggest incremental buyers in the physical market at a time when gold has surged to record highs above $5,200/oz. That kind of sustained weekly buying—50-100 tons annually—rivals the purchase programs of major central banks.
Bloomberg reports that over the course of last year they bought 70 tons of gold and that two top gold traders left HSBC last year for Tether. Among reporting central banks, only Poland bought more last year (though other central banks likely bought more undisclosed). Here is a hint on the strategy:
Chief executive Paolo Ardoino described the company’s role in the gold
market as similar to that of a central bank, and predicted that
Washington’s geopolitical rivals would launch a gold-backed alternative
to the dollar. He revealed that it plans to keep ploughing its enormous
profits into gold, while also beginning to compete with banks in trading
the metal.
He was somewhat wishy-washy about whether they will continue buying:
Ardoino
said that Tether had been buying at a rate of about one to two tons a
week, and intended to continue doing so for “definitely the next few
months.”
“Then
of course, based on the market, we are going to decide, but yeah, I
think we will continue in this direction,” the 41 year-old Italian
added.
They’re now surely sitting on an enormous mark-to-market gain for corporate holdings but Tether is aslo using the reserves partly to back its gold-pegged token XAUT, which the company expects could reach up to $10 billion in circulation. But the broader strategy appears to mirror central bank reserve management, with executives citing declining trust in fiat currencies as a key driver.
I wonder if this signals to the rest of the crypto market that gold is the next frontier. If we see a broader shift by crypto enthusiasts into gold, then it could mean some major flows in that direction.
Gold hit a record $5311 earlier today and is trading up $76 to $5266.
gold daily chart
