Tether, the issuer of the world’s largest stablecoin, is planning a notable shift in how it manages its corporate investments. Speaking to Reuters, CEO Paolo Ardoino revealed that the company intends to allocate between 10% and 15% of its investment portfolio to physical gold, placing the precious metal alongside Bitcoin as a core long-term holding.
The move comes at a time when global markets are increasingly shaped by geopolitical tension, concerns over fiat currency stability, and a strong rally in gold prices.
While Tether has long emphasized conservative reserve management for its stablecoin operations, Ardoino’s comments highlight a broader strategy for the firm’s own profits and balance sheet.
“For our own portfolio, it’s reasonable that we are going to have around 10% in bitcoin and 10% to 15% in gold,” Ardoino said in a video interview with Reuters.
Key Takeaways
- Tether plans to allocate 10–15% of its investment portfolio to physical gold, positioning the metal alongside Bitcoin as a core long-term holding.
- The company now holds about 130 metric tons of physical gold, reflecting an aggressive accumulation strategy driven by global economic uncertainty.
- Gold purchases are being funded from company profits and reviewed quarterly, with Tether prioritizing direct ownership and Swiss-based storage.
- Tether’s gold exposure supports both its USDT stablecoin and its XAUT gold-backed token, reinforcing confidence in its reserve-backed model.
- The strategy signals a growing institutional preference for traditional safe-haven assets as gold continues to outperform Bitcoin amid market stress.
A Growing Bet on Physical Gold
Tether’s exposure to gold is not new, but the scale is expanding. The company disclosed that it currently holds about 130 metric tons of physical gold, following the addition of 27 tons in the fourth quarter alone.
According to Ardoino, Tether has been buying gold at a pace of roughly two tons per week, underscoring a steady accumulation rather than a one-off purchase.
The gold is physically stored in Switzerland, and Ardoino emphasized that Tether intends to maintain direct ownership of the bullion. Unlike some institutional investors that rely on paper gold or exchange-traded products, Tether’s preference for physical custody reflects a desire to minimize counterparty risk.
Notably, the company does not operate with a fixed gold-buying target. Instead, decisions around further accumulation are reviewed on a quarterly basis, allowing flexibility in response to market conditions.
Gold, Bitcoin, and a Question of Preference
Ardoino framed the firm’s allocation to gold and Bitcoin as complementary rather than competitive. While Bitcoin has often been described as “digital gold,” Tether’s strategy suggests it sees value in holding both assets side by side.
“It’s hard to decide which one I like the most. It is almost like you have two children and have to decide which one is more beautiful,” Ardoino remarked.
This balanced approach stands out at a time when gold has significantly outperformed Bitcoin. Gold prices surged by about 64% last year and have continued to climb this year, repeatedly setting new all-time highs.
The rally has been fueled by falling confidence in the U.S. dollar, concerns over central bank independence, and heightened demand for traditional safe-haven assets.
In contrast, Bitcoin has lagged behind gold’s momentum, prompting renewed debate among investors about the role of digital assets versus physical stores of value during periods of global stress.
Backing Stablecoins With Real Assets
Tether’s gold holdings also play a functional role in its product lineup. The company said it purchased large quantities of gold last year to support both its flagship USDT stablecoin and its gold-backed token, XAUT.
USDT remains the dominant dollar-pegged stablecoin, with around $186 billion worth of tokens in circulation. XAUT, which is directly backed by physical gold, has a circulating supply valued at roughly $2.7 billion. Each XAUT token represents ownership of a specific amount of gold stored in secure vaults, offering token holders exposure to bullion without direct custody.
Tether’s broader reserve strategy for USDT continues to rely heavily on U.S. Treasury bills and other liquid assets. The firm has repeatedly stated that its stablecoins are fully backed, with reserves designed to ensure 1:1 redemptions at all times.
A Response to Global Uncertainty
Ardoino linked Tether’s growing interest in gold to broader macroeconomic and geopolitical concerns. According to him, the company began buying significant amounts of gold in 2020, during the height of the COVID-19 pandemic, and continued as global tensions intensified.
“The world is not in a happy place at this moment. Gold is making all-time highs every single day. Why? Because everyone is scared,” he said.
This perspective mirrors a wider trend among institutional investors who are increasing allocations to hard assets as a hedge against inflation, currency debasement, and political risk.
Profits, Scale, and Long-Term Strategy
Beyond gold and Bitcoin, Tether has been deploying its profits across a diverse range of assets, including U.S. Treasuries, technology investments, and gold royalty firms. Ardoino noted that the company employs around 250 people and expects profitability to remain strong.
He said Tether’s profit in 2026 could surpass the estimated $10 billion earned in 2025 and potentially exceed the $13.7 billion recorded in 2024, highlighting the scale of cash flow generated by its stablecoin business.
While Ardoino did not disclose the total size of Tether’s investment portfolio, the planned allocation suggests that gold could eventually outweigh Bitcoin in percentage terms. If fully implemented, this would mark a rare example of a major crypto-native company formally prioritizing a traditional asset over digital alternatives.
What It Signals for the Crypto Market
Tether’s strategy sends a clear signal to the broader crypto industry. Even as blockchain-based assets continue to gain adoption, the company behind the most widely used stablecoin is doubling down on physical reserves and conservative asset management.
For stablecoin users, the emphasis on gold and Treasuries reinforces Tether’s message of stability and redemption reliability. For investors, it reflects a pragmatic view of risk—one that acknowledges the appeal of Bitcoin while still leaning on centuries-old stores of value during uncertain times.
As markets continue to grapple with economic and political instability, Tether’s growing gold stack may become one of the most closely watched components of its balance sheet.
