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Tether has just announced that it holds nearly 80 tons of gold in a “secret” Swiss vault.

Tether’s gold holdings aren’t just about returns. The company is backing its Tether Gold (XAUT) token to actual, physical gold.

While this amount of physical gold is impressive, it still raises questions about why Tether has no fully-audited reserves. 

 

Tether, the world’s largest stablecoin issuer, has stockpiled nearly 80 tons of gold, worth about $8 billion into a single, ultra-secure vault in Switzerland. Some have hailed this move as a great step in Tether’s asset strategy. 

However, there are still some concerns about the company’s financial transparency and the security of its USDT stablecoin. Here’s what we know so far.

A Bet on Gold

According to a recent interview with Bloomberg, Tether CEO Paolo Ardoino confirmed that the company has secured its gold holdings. This was in what he calls “the most secure vault in the world.” 

Even though the vault’s exact location is still largely unknown for security reasons, it is clear that Tether sees this move as a symbol of financial strength.

According to Bloomberg, Tether has built and operates its own gold vault in Switzerland, holding around $8 billion in gold to lower custody costs and expand its reserves.https://t.co/zANayjRNDe

— Wu Blockchain (@WuBlockchain) July 8, 2025

“Gold should logically be a safer asset than any national currency,” Ardoino said, referring to the worldwide inflation and debt concerns. According to Trading Economics, gold has surged by nearly 38.5% over the past year, and even hit an all-time high of $3,390 per ounce in April. 

At the time of writing, gold is still trading at a high around $3,289 in a show of strong investor interest. This surge in gold’s value has prompted many institutions, including central banks across BRICS nations to increase their holdings. 

Not an Investment, But a Reserve

Tether’s gold holdings aren’t just about returns. The company is backing its Tether Gold (XAUT) token with actual, physical gold. 

This stablecoin has a market cap of over $811 million, and has become one of the  biggest players among commodity-backed tokens. Earlier this year, Tether reported holding 7.7 tons of gold in its Q1 financial statement. 

The new consolidation into a single Swiss vault shows that the company has implemented an increase of about 0.3 tons since then. Its housing of the entire reserve in one facility means that Tether is looking towards reducing custodial costs and streamlining management. 

Ardoino noted that having their own vault made more financial sense than relying on third-party vault operators.  

“Eventually, with size, it gets much cheaper to do custody,” he said.

Tether Among the World’s Largest Gold Holders

What makes Tether’s gold reserve stand out is its sheer size. The company’s 80 tons of gold means that it now holds more than some countries and stands toe-to-toe with financial giants like UBS Group. 

This places Tether among the largest non-sovereign holders of gold in the world.

However, while this status brings prestige, it also comes with problems of its own. For example, while the gold vault might improve confidence in Tether’s reserve strategy, it also creates issues concerning the backing of USDT, the company’s main product.

Only a Fraction of Tether’s Reserves

Despite the impressive $8 billion gold stash, it represents less than 5% of Tether’s total reserves. According to its latest quarterly report, the bulk of Tether’s reserves lie in US Treasury bonds, and are estimated to be around $98 billion as of Q1. 

Other reserves likely include corporate debt, cash and digital assets. This makes the gold reserve, however large in isolation, relatively insignificant when compared to the total assets meant to back Tether’s stablecoins. 

According to critics, this flashy announcement may distract investors from more pressing concerns. Does Tether have a full audit of all its reserves? It turns out that the company doesn’t. While the $8 billion vault is a symbol of strength, it is not the whole story.

Until Tether opens its books fully, questions about the remaining 95% of its reserves will continue to shadow its growth. This is especially likely, in an industry where transparency is always worth more than gold.

The post Why is Tether Stockpiling $8 Billion Worth of Gold in A Secret Swiss Vault? appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ July 9, 2025 2:20 pm