Tether holds $8 billion worth of gold in Swiss vault, matching UBS exposure

Tether CEO Paolo Ardoino revealed that the steadfast holds astir $8 cardinal successful golden successful a Swiss vault during an interrogation with Bloomberg News connected July 7.

Ardoino called the tract “the astir unafraid vault successful the world” and said the institution owns astir the full 80-ton stockpile outright, placing the El Salvador-based issuer among the largest backstage golden holders globally.

According to a March attestation, golden present represents astir 5% of Tether’s $112 cardinal reserve portfolio. The stash’s dollar worth matches the precious metals publication astatine UBS Group AG, 1 of the fewer bullion-dealing banks that interruption retired those holdings.

Tether’s USDT reached a marketplace capitalization of $159 cardinal past month, pursuing astir $5 cardinal successful monthly growth.

Ardoino argued that Tether tin standard a golden programme without proportionally higher fees by self-custodying bullion alternatively of utilizing commercialized vault operators, which complaint astir 50 ground points.

Regulatory headwinds successful cardinal markets

Lawmakers connected some sides of the Atlantic are moving successful the other direction. Draft US bills specified arsenic the GENIUS Act and Europe’s Markets successful Crypto-Assets (MiCA) model let lone currency oregon near-cash instruments to collateralize fiat-referenced stablecoins, excluding commodities similar gold.

If those rules instrumentality effect and Tether seeks licenses successful those jurisdictions, it would person to liquidate the bullion that backs USDT, though the institution could clasp metallic tied to its gold-backed token, XAUT.

Notably, MiCA granted licenses to 53 crypto firms successful the archetypal six months of regulation but excluded Tether.

XAUT circulates against 7.7 tons of gold, worthy astir $819 million, which is good beneath the 950-ton elephantine among exchange-traded golden funds but ample capable to marque redemptions viable astatine vault doors successful Switzerland.

Ardoino said request could accelerate if investors suffer assurance successful US fiscal sustainability and question alternatives that debar bank-deposit hazard portion remaining on-chain.

Market discourse and outlook for bullion-linked tokens

Spot golden has precocious by astir 25% successful 2025 arsenic traders hedge tariff-driven commercialized friction and wider geopolitical tension.

Ardoino said:

“Every azygous cardinal slope successful the BRICS countries is buying gold, truthful that is wherefore the terms went up successful our opinion.”

Tether indispensable inactive person regulators that a metal-heavy reserve would not impede USDT’s liquidity nether stress.

For now, the steadfast holds the metal, earns output connected Treasurys, and keeps a abstracted token straight convertible into vaulted bars, combining accepted bullion economics with blockchain settlement.

The station Tether holds $8 cardinal worthy of golden successful Swiss vault, matching UBS exposure appeared archetypal connected CryptoSlate.