Tether has emerged as the world’s largest private holder of gold, amassing an estimated 140 tonnes of the precious metal with a market value of roughly $23 billion. The scale and pace of the accumulation place the stablecoin issuer ahead of nearly all central banks in annual gold purchases, underscoring a dramatic shift in how major crypto firms manage reserves.
According to people familiar with the strategy, Tether is currently acquiring between one and two tonnes of gold per week. Over the past year alone, the company bought more than 70 tonnes – more than almost every central bank globally, with the notable exception of Poland, which officially added 102 tonnes to its reserves.
All of Tether’s gold is held in physical form, stored in Switzerland inside a former nuclear bunker equipped with a multi-layered security system.
Why Tether is stockpiling gold
Tether’s aggressive gold buying reflects a broader strategy to diversify away from traditional financial assets and reinforce confidence in its balance sheet. The company issues the world’s largest stablecoin, USDT, and manages tens of billions of dollars in reserves backing its tokens.
Chief executive Paolo Ardoino has openly compared Tether’s role to that of a central bank, arguing that the firm is effectively becoming one of the world’s largest “gold central banks.” The comparison underscores how the company views gold as a strategic anchor in an era of rising currency volatility and geopolitical risk.
The timing is notable. As previously covered, the U.S. dollar has been under sustained pressure, with weakening confidence in fiat currencies driving renewed interest in hard assets. Against that backdrop, Tether’s gold strategy mirrors the behavior of sovereign reserve managers rather than that of a typical private company.
By holding physical bullion instead of paper claims, Tether is also reducing counterparty risk. The decision to store gold in Switzerland – a jurisdiction long associated with neutrality and asset security – further reinforces that positioning.
Markets and the crypto industry
Tether’s ascent as the largest private gold holder highlights a growing convergence between crypto finance and traditional reserve management. While stablecoins were originally framed as purely digital instruments, Tether’s strategy suggests that credibility at scale increasingly depends on tangible, real-world assets.
For the gold market, sustained weekly purchases of up to two tonnes by a single private entity represent a meaningful source of structural demand. Combined with continued central bank buying, this could provide long-term support for prices, particularly if currency volatility persists.
The move may also intensify regulatory and market scrutiny. Comparing a private company to a central bank raises questions about transparency, governance, and systemic importance – especially given Tether’s role in global crypto liquidity.
At the same time, Tether’s strategy could influence competitors. Other stablecoin issuers and crypto firms may face pressure to demonstrate similarly robust reserve backing, potentially accelerating a broader shift toward hard assets within the digital finance ecosystem.
If current trends continue, Tether’s gold accumulation may be remembered as a defining moment – one in which a crypto-native firm adopted central-bank-style reserve behavior, reshaping perceptions of both stablecoins and gold’s role in the modern financial system.