Tether Holdings SA, issuer of the $159 billion USDT stablecoin, has opened a high-security vault in Switzerland to store $8 billion in gold.
Tether's Secret Vault
Tether CEO Paulo Ardoino confirmed the existence of this vault, stating it is "the most secure vault in the world." The exact location has not been disclosed for security reasons, marking a significant operational shift for the company.
Gold Holding Strategy
Ardoino stated that the decision to build the vault was driven by the need for cost efficiency, especially with the expected growth of the gold-backed token, XAUT. He explained, "If Tether’s gold token was to grow to $100 billion in circulation... If you have your own vault, eventually with the size, it gets much cheaper to do custody."
Stablecoin Market Trends
Tether's gold strategy comes at a time when the stablecoin market is booming, recently reaching a total supply of $255.3 billion. USDT accounts for over 62% of this amount, while its closest competitor, Circle’s USDC, holds about 24%.
Tether's expansion into gold assets may lead to regulatory changes that could necessitate the company to reassess its reserves.
