Tether Deepens Gold Investment Strategy with $8 Billion in Bullion and Key Equity Stake

Tether, the issuer of the world’s largest stablecoin, USDT, is doubling down on gold as part of its expanding reserve strategy. With approximately $8 billion worth of gold stored in a Swiss vault and a significant equity stake in gold royalty firm Elemental Altus, Tether is reinforcing its commitment to real-world assets to underpin digital value.

According to CEO Paolo Ardoino, Tether owns almost the entire 80-ton gold stockpile it holds in Switzerland, making it one of the largest private gold holders globally. In a July 2025 interview with Bloomberg, Ardoino described the vault as “the most secure in the world,” emphasizing the importance of physical security and sovereignty in the company’s reserve structure.

Gold Now Represents 5% of Tether’s $112 Billion Portfolio

A March 2025 attestation revealed that gold now accounts for nearly 5% of Tether’s $112 billion reserve portfolio. This matches the precious metals exposure of global banking giant UBS, underscoring Tether’s growing influence in the bullion space.

Tether’s USDT market cap surged to $159 billion in June 2025, driven by increasing demand for stablecoins that maintain value through volatile economic periods. As inflation concerns and geopolitical risks intensify, Tether’s pivot to precious metals may signal a shift in how stablecoins are collateralized.

Elemental Altus: Tether’s Strategic Entry into Gold Royalties

Tether’s commitment to gold isn’t limited to bullion alone. In June 2025, the company announced the acquisition of a 31.9% equity stake in Elemental Altus Royalties, a firm specializing in gold royalties. Valued at nearly $90 million, the stake was purchased from La Mancha Investments and marks a bold move into the gold production sector—without the direct risk of mining operations.

Additionally, Tether holds an option to purchase another 34.4 million shares, which, if exercised, would bring its ownership close to 48% of Elemental Altus. This could pave the way for further collaboration on capital strategy and the development of gold-backed digital financial products.

Tether CEO Paolo Ardoino highlighted the synergy between gold and blockchain technology, stating:

“Gold continues to be a time-tested store of value. Through Elemental’s royalty model, we gain exposure to gold production while minimizing risk. It aligns perfectly with our broader strategy to build a financial ecosystem based on real-world assets.”

Tether’s Multi-Asset Reserve Model: Gold, Bitcoin, and Treasuries

Tether is diversifying its reserves beyond traditional fiat and near-cash instruments. The company also holds over 100,000 Bitcoin, alongside significant allocations to U.S. Treasury securities. This diversified approach allows Tether to generate yield, hedge against inflation, and reduce reliance on banking infrastructure.

Unlike many stablecoin issuers, Tether has chosen to self-custody its gold rather than use commercial vault operators. This helps avoid high storage fees, typically around 50 basis points, and adds another layer of autonomy to its operations.

Ardoino explained:

“By self-custodying our gold, we can scale the program without increasing fees. It’s a sustainable model that gives us direct control over our reserves.”

Regulatory Headwinds: Gold’s Role in Stablecoin Backing Faces Scrutiny

Despite its strategic gold holdings, Tether faces growing regulatory challenges in key markets. Proposed legislation in both the U.S. and Europe—such as the GENIUS Act and the Markets in Crypto-Assets (MiCA) framework—limits the use of commodities like gold to back fiat-referenced stablecoins. These laws could force Tether to unwind its gold reserves if it seeks to comply with local licensing requirements.

However, Tether’s gold-backed token, XAUT, which is directly convertible into physical bullion stored in Switzerland, remains unaffected. Currently backed by 7.7 tons of gold worth around $819 million, XAUT offers an alternative path for investors who value blockchain-based gold ownership.

Market Outlook: Rising Gold Prices, Rising Demand

Gold prices have surged over 25% in 2025, driven by macroeconomic uncertainty, rising tariffs, and global geopolitical tensions. Central banks in BRICS countries have been aggressively buying gold, contributing to the bullish momentum.

In this context, Tether’s gold strategy appears both defensive and forward-looking. As confidence in fiat-backed financial systems erodes, demand for blockchain-native assets backed by tangible resources is likely to grow.

“We believe in systems backed by real assets, not just promises,” Ardoino said. “Gold and Bitcoin are the foundations of the most resilient forms of digital value.”

The Future of Commodity-Backed Digital Assets

Tether’s expanding gold footprint positions it uniquely in the evolving stablecoin landscape. By combining traditional bullion economics with blockchain settlement, the company is laying the groundwork for a new class of digital financial products—anchored in real-world assets but agile enough for Web3 ecosystems.

Whether Tether’s gold holdings will continue to grow remains to be seen. Regulatory developments could force strategic pivots, but the company has signaled a long-term commitment to asset diversification and monetary resilience.

As the stablecoin sector matures, Tether’s gold strategy could become a model for bridging the gap between traditional finance and decentralized infrastructure.