Tether’s Gold Buying Rivals Central Banks as Tokenized Assets Gain Traction

Tether has quietly become one of the world’s largest private holders of physical gold. The issuer of the world’s biggest stablecoin is buying bullion at a pace that now rivals national governments. Executives say the strategy is driven by rising concerns over monetary stability and declining confidence in paper-based assets. The expanding gold reserves also reinforce the backing of Tether’s gold-linked products.

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Paolo Ardoino, Tether’s chief executive officer, said the company is purchasing up to two metric tons of physical gold each week. He added that the firm expects to maintain that pace for several months. 

At current prices, the buying totals more than $1 billion per month. The gold is stored in Switzerland at a high-security facility housed in a former nuclear bunker, which Ardoino likened to a setting from a spy film.

Tether’s total gold holdings now amount to approximately 140 metric tons, with an estimated value of $24 billion. That places the company among the largest known non-sovereign holders of bullion, alongside major exchange-traded funds but outside the ranks of governments and central banks. 

Most of the gold is held as part of Tether’s corporate reserves, while a smaller portion backs its gold-backed stablecoin, which has a market capitalization of roughly $2.7 billion.

The company’s recent purchases have exceeded those of several sovereign buyers, including Greece, Qatar, and Australia. In the final quarter of 2025 alone, Tether added 27 metric tons of gold. 

Through Tether Gold, we are operating at a scale that now places the Tether Gold Investment Fund alongside sovereign gold holders, and that carries real responsibility. XAU₮ exists to remove ambiguity at a time when confidence in monetary systems is weakening.

Paolo Ardoino

Several trends are influencing Tether’s approach:

• Growing concern about fiat currencies and long-term inflation.
• Limited transparency in gold ETFs and equity-based gold exposure.
• Increasing interest in tokenized assets backed by physical commodities.
• Accelerating gold accumulation by central banks worldwide.
• Expectations of new gold-backed digital currencies that could compete with the U.S. dollar.

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Björn Schmidtke, chief executive of Aurelion, the firm overseeing Tether’s gold treasury operations, said most gold investment today remains indirect. Roughly 98% of exposure comes through ETFs or similar instruments that do not provide ownership of specific gold bars. 

Heavy reliance on what he described as “paper gold,” Schmidtke warned, could prove fragile during a market shock, particularly if investors demand large-scale redemptions. Tokenized gold, by contrast, reduces delivery constraints and offers clearer proof of ownership.

Gold prices have climbed sharply amid strong global demand. The metal has risen more than 90% over the past year and is now trading near $5,260 per ounce. 

Analysts at Jefferies said Tether’s steady buying likely added to upward price pressure, although central bank purchases played a larger role. Poland, Kazakhstan, Brazil, and Azerbaijan were among the largest official buyers last year, according to the World Gold Council.

Ardoino said some of Tether’s gold accumulation may also reflect preparations by foreign governments to issue gold-backed digital assets that could challenge the dominance of the U.S. dollar. Countries in the BRICS group have been consistent net buyers of gold, with Russia a notable exception due to heavy reserve usage linked to its ongoing conflict.