Tether Buys $1B in Gold Monthly, Stores Reserves in ‘James Bond’ Bunker

What to Know

• Tether is purchasing up to two tons of physical gold per week, equivalent to more than $1 billion per month at current prices
• The company has accumulated roughly 140 tons of gold, making it one of the largest non-government holders globally
• Most of the gold supports Tether’s own reserves, with a portion backing its XAUT gold-backed stablecoin
• Gold prices are up more than 90% year-over-year, with strong demand from Tether and global central banks

Tether, the issuer behind the world’s largest stablecoin USDT, is rapidly expanding its exposure to physical gold, quietly becoming one of the most aggressive non-government buyers of the precious metal. The company is currently acquiring gold at a pace of up to two tons per week, translating to more than $1 billion in monthly purchases based on current market prices.

According to statements from the company’s CEO, Paolo Ardoino, who spoke to Bloomberg, the gold-buying strategy is expected to continue in the coming months as the firm deepens its focus on hard assets amid growing concerns about the global monetary system.

Tether’s Gold Stockpile Reaches Strategic Scale

Tether’s total gold holdings have now reached approximately 140 metric tons, with an estimated market value of around $24 billion. This places the company among the largest known holders of physical gold outside of governments, central banks, and major exchange-traded funds.

The bulk of the gold is held as part of Tether’s internal reserves, strengthening its balance sheet diversification strategy. A smaller portion is used to support XAUT, the company’s gold-backed stablecoin, which allows holders to gain exposure to physical gold through blockchain-based tokens.

Tether has confirmed that its bullion is stored in a high-security underground facility in Switzerland, reinforcing the firm’s emphasis on physical custody and asset security.

Why Tether Is Favoring Physical Gold Over Paper Assets

Tether’s gold strategy reflects a broader skepticism toward traditional financial instruments tied to gold exposure. Company executives have highlighted concerns around so-called “paper gold,” such as ETFs and derivative products, where investors do not hold direct claim to specific physical bars.

By contrast, tokenized gold backed by allocated bullion offers clearer ownership, portability, and settlement efficiency. Tether argues that this structure removes uncertainty during periods of financial stress, particularly if large-scale redemptions were to test the liquidity of gold-backed paper instruments.

This positioning aligns with growing demand for transparent, asset-backed alternatives as confidence in fiat currencies and debt-heavy financial systems continues to erode.

Gold Market Impact and Central Bank Parallels

Gold prices have surged more than 90% over the past year, recently trading above the $5,200 per ounce level. While Tether’s accumulation alone is unlikely to fully explain the rally, its steady demand adds to an already tight market environment.

Central banks remain major contributors to gold demand, with countries such as Poland, Brazil, Kazakhstan, and Azerbaijan among the most active buyers in recent quarters. This combination of sovereign and corporate accumulation has reinforced gold’s role as a strategic reserve asset.

Tether’s leadership has suggested that part of this global gold accumulation may be driven by preparations for alternative monetary frameworks, including tokenized gold systems that could reduce reliance on the US dollar in cross-border trade.

Strategic Implications for Crypto and Gold Markets

Tether’s growing gold exposure highlights an emerging convergence between traditional safe-haven assets and digital finance. By anchoring parts of its ecosystem to physical gold, Tether is positioning itself at the intersection of commodities, stablecoins, and alternative monetary infrastructure.

As regulatory scrutiny intensifies and global macro risks persist, the company’s gold strategy could influence how institutions and investors view asset-backed digital currencies relative to fiat-pegged alternatives.

While questions around market influence remain, one thing is clear: Tether’s role in the gold market is no longer marginal.

Gold and Stablecoins Q&A

Why is Tether buying so much gold?

Tether views gold as a long-term store of value that diversifies its reserves and reduces exposure to fiat currency risk, particularly amid rising global debt and monetary uncertainty.

How does Tether’s gold support XAUT?

Each XAUT token is backed by allocated physical gold, allowing holders to gain blockchain-based exposure to bullion without relying on traditional financial intermediaries.

Can Tether’s buying affect gold prices?

While central banks remain the dominant force, sustained large-scale buying from entities like Tether can contribute to tighter supply conditions and reinforce bullish price trends.

Why does Tether prefer physical gold over ETFs?

Physical gold offers direct ownership and eliminates counterparty risk, whereas ETFs and derivatives may face liquidity and redemption challenges during market stress.