Tether has announced a significant increase in its physical assets by storing 80 tons of gold in its own vault in Switzerland.
Gold as a Strategic Asset
Tether, known as a major issuer of stablecoins, has confirmed that it now holds nearly 80 metric tons of gold worth around $8 billion in a private vault in Switzerland. CEO Paolo Ardoino stated that this decision was about ownership, scale, and cost.
Market and Regulation
According to Tether's reports, nearly 5% of its reserves are now held in precious metals, primarily gold. However, the growing role of stablecoins has led to stricter regulation in the U.S. and E.U., limiting the types of assets that can back digital tokens. If Tether decides to operate in those markets, it would be required to sell off its gold reserves to meet compliance standards.
Paolo Ardoino's View on Gold
Paolo Ardoino emphasized that the acquisition of gold is based on rising economic instability and distrust in fiat currencies. He believes that gold is a safer asset amid economic threats. "Every single central bank in the BRICS countries is buying gold," Paolo said, noting the 25% rise in gold prices this year.
Tether's decision to hold gold in Switzerland may alter its approach to reserves and attract interest from regulators.
