Tether builds $24B gold reserve in Switzerland, rivaling central banks

What's the deal? Tether, the company behind the USDT stablecoin, has quietly accumulated around 140 tonnes of gold, worth about $24B, stored in a fortified Swiss facility. The move positions Tether as one of the largest private holders of gold globally, a role usually associated with central banks.

Why now? The purchases have been ongoing, with the company reportedly buying one to two tonnes per week. Rising economic uncertainty and surging gold prices make this a timely strategy to bolster Tether’s reserves and the stability of its stablecoin.

What could go wrong? Storing large amounts of gold privately carries security and regulatory risks. Questions remain about transparency and audit practices, and the scale of the holdings could draw scrutiny from regulators concerned about financial stability.

The signal: This signals a broader trend of crypto firms diversifying into tangible assets. Tether’s move reflects the growing intersection between traditional markets and digital currencies, highlighting how stablecoin issuers hedge against volatility with physical reserves.

Sources:
AInvest
Yahoo! Finance
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A.M.