Tether buys gold at a level comparable to central banks

Tether has quietly become one of the largest private holders of physical gold in the world. The issuer of the world's leading stablecoin is buying bullion at a rate that now rivals that of governments. According to its leaders, this strategy responds to growing concerns about monetary stability and the loss of confidence in paper assets. The expansion of its reserves also strengthens the credibility of the gold-related products offered by Tether.

Tether gold rush reflects rising demand for crypto backed by real assets

Paolo Ardoino, CEO of Tether, revealed that the company purchases up to two metric tons of physical gold every week, and plans to maintain this pace for several months.

At current prices, that's over $1 billion in purchases per month. The ingots are kept in a former Swiss nuclear bunker converted into an ultra-secure facility, which Ardoino compares to a spy movie set.

Through Tether Gold, we operate at a scale that now places our investment fund alongside sovereign holders. This implies real responsibility. XAU₮ exists to remove ambiguity at a time when trust in monetary systems is crumbling.

Paolo Ardoino

Several factors are pushing Tether towards gold:

• Ongoing concerns about fiat currencies and long-term inflation;
• Transparency deemed insufficient in gold ETFs and stocks linked to precious metals;
• A growing enthusiasm for tokenized assets backed by physical resources;
• The acceleration of gold purchases by central banks around the world;
• The anticipation of digital currencies backed by gold, competing with the US dollar.

BRICS, tokenized gold and upheaval of global finance

Björn Schmidtke, chief executive of Aurelion, the company in charge of Tether's gold treasury operations, believes that the majority of current investments in gold are indirect. Around 98% of exposure is through ETFs or similar financial instruments, without offering actual ownership of physical bullion.

Schmidtke warns that this dependence on “paper gold” could prove risky in the event of a market shock, if massive buybacks were to be required. Tokenized gold, he says, circumvents these logistical constraints while providing clear and verifiable proof of ownership.

Against a backdrop of strong global demand, gold prices have risen sharply. The metal has gained more than 90% over one year and is now trading around $5,260 per ounce.

Analysts at Jefferies believe that regular purchases of Tether may have added upward pressure on prices, although central banks remain the major players. In 2025, Poland, Kazakhstan, Brazil and Azerbaijan were among the main official buyersaccording to the World Gold Council.

Ardoino adds that part of this strategy could also be explained by the preparations of some governments to issue their own gold-backed digital currencies. This movement could challenge the supremacy of the dollar. The BRICS countries, with the notable exception of Russia, which has drawn heavily on its reserves due to the ongoing conflict, have been net buyers throughout the year.