Tether CEO Paolo Ardoino has announced the stablecoin issuer is significantly increasing its gold purchases, planning to allocate up to 15% of its portfolio to the precious metal while maintaining a 10% allocation to Bitcoin. This strategic shift in reserve management has sparked discussions about asset diversification, though the company confirms it is not abandoning its Bitcoin strategy.
According to reports from Reuters and Bloomberg, Ardoino stated that Tether plans to continue investing in both Bitcoin and gold as core reserve assets. The target allocation is approximately 10% of the portfolio to BTC and 10%-15% to gold. Tether's gold holdings are now substantial, with the company holding between 130 and 140 metric tons of gold, valued at around $24 billion. This makes Tether one of the world's largest known gold holders outside of central banks, ETFs, and commercial banks, ranking among the top 30 global holders and surpassing countries like Greece, Qatar, and Australia.
The company's aggressive accumulation strategy involves purchasing about one to two tons of gold per week, which at current prices equates to roughly $1 billion in monthly purchases. Ardoino revealed that Tether reviews these purchases quarterly and funds them using company profits. The gold is stored in Switzerland, with Tether retaining direct ownership.
Despite the focus on gold, Tether remains a major Bitcoin holder. The company purchased 8,888 Bitcoin (worth approximately $779 million) in Q4 of last year and currently holds a total of 96,370 BTC, valued at $8.46 billion. This positions Tether as the second-largest corporate Bitcoin holder, behind only MicroStrategy.
Ardoino described Tether's evolving role in the gold market as akin to a central bank, stating the firm is effectively becoming "one of the world’s largest gold central banks." He indicated that Tether isn't just looking to hold gold but also to trade it, aiming to compete with banks and become "the best gold trading floor in the world" to support long-term accumulation.
This reserve strategy is framed against a backdrop of market uncertainty and shifting asset performances. Gold has been reaching new all-time highs, crossing $5,300 per ounce, while Bitcoin has been trading below $90,000, approximately 30% below its peak of $126,000. Ardoino cited geopolitical tensions and fear-driven demand as factors supporting gold's appeal. He emphasized that reserve strength is central to maintaining user trust in Tether's stablecoins, including USDT and its gold-backed token XAUT, which has a market cap of $2.6 billion.
