Tether Holdings SA has recruited two senior precious metals traders from HSBC, Vincent Domien, global head of metals trading, and Mathew O’Neill, head of metals origination for Europe, the Middle East, and Africa, to join the company in the coming months. This move is aimed at strengthening Tether's gold reserve strategy and positioning it to compete with major players in the traditional bullion market.
According to reserve reports, Tether holds over $12 billion in bullion and has been adding gold at an average pace of one ton per week over the past year, making it one of the largest gold holders outside of banks and nation-states. The company has also invested in other parts of the supply chain, including precious metals royalty companies, to expand its footprint.
The primary objective is to reinforce the reserves backing its stablecoins, USDT and Tether Gold (XAUT). USDT remains convertible 1:1 with the U.S. dollar, backed primarily by U.S. government debt and other assets, while XAUT has roughly $2 billion in circulation, fully backed by approximately 1,300 gold bars. This strategy enhances credibility and offers direct exposure to gold for users.
This development occurs amid gold's strong performance, with prices crossing $4,100 and marking its best annual run since 1979, driven by central bank purchases and demand for hedges against sovereign debt. Tether generated $13 billion in profits last year and expects to reach $15 billion in 2025. The new hires will optimize asset management, improve execution in gold sourcing, and strengthen Tether's role in the precious metals market.
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