Tether, the prominent issuer of stablecoins, has established an impressive gold vault empire valued at approximately $8 billion, securely housed in a private facility in Switzerland, according to insights from CEO Paolo Ardoino in a recent interview with Bloomberg.
The company directly owns a significant portion of the roughly 80 tons of gold it has amassed. However, this precious metal only constitutes about 5% of Tether’s overall reserve portfolio, which stood at $112 billion as of March, as detailed in the company’s attestation.
Ardoino emphasized the security of their operations, stating, “We have our own vault. I believe it’s the most secure vault in the world,” while refraining from disclosing the exact location of this Swiss vault, citing security concerns.
As for the performance of USDT, Tether’s stablecoin reached a market capitalization of $159 billion last month, capturing 62.43% of the total $255 billion stablecoin market.
The company’s gold holdings reportedly parallel the total precious metals and commodities exposure of UBS Group, as mentioned in the report.
Tether Gold Reserves Indicate Shift from Traditional Fiat Risks
Acknowledging gold’s role as a safe haven, Ardoino suggested that it serves as a protective measure against potential fiat and regulatory volatility. He asserted that gold stands as a more secure asset compared to any national currency.
“Eventually, I think that if people start to get concerned about the potential increase of the debt of the US, they might look at alternatives,” Ardoino conveyed to Bloomberg.
Additionally, a report from J.P. Morgan noted that recent increases in gold prices have been driven by significant purchasing from central banks and renewed interest in gold ETFs from investors.
“Every single central bank in the BRICS countries is buying gold,” he added, signaling a global trend towards securing gold assets.
Cost Efficiency Through In-House Gold Custody
Tether’s association with gold extends to its launch of Tether Gold, a token designed to reflect the value of gold, which has recently demonstrated stable performance.
Ardoino explained that Tether’s choice to establish its own vault stemmed from the prohibitive fees charged by third-party precious metal vault operators.
He elaborated, stating that if Tether’s gold-backed token were to scale to $100 billion in circulation, the associated costs, calculated at 50 basis points, would be considerable. “If you have your own vault, eventually with the size, it gets much cheaper to do custody,” Ardoino concluded.
@Tether_to has invested in blockchain analytics firm Crystal Intelligence to boost efforts against illicit stablecoin use.#CryptoSecurity #BlockchainCompliancehttps://t.co/f1Stp5c6fi
— Finance Newso.com (@Finance Newso) July 8, 2025
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