Last Updated on January 31, 2026
Tether builds massive gold reserves, acquiring between one and two tonnes every week and storing the metal in a high-security Swiss bunker originally built during the Cold War.
According to CEO Paolo Ardoino, who spoke to Bloomberg, the company plans to maintain this pace of purchases for at least several more months. At current market prices, that translates into more than $1 billion in gold acquisitions per month, an amount that rivals the buying activity of many central banks.
A Cold War Vault for Digital Money
The gold is transported to a fortified underground facility in the Swiss Alps, designed decades ago to withstand a nuclear explosion. Thick steel doors and reinforced concrete walls now protect rows of gold bars rather than strategic military assets.
Ardoino described the site as “something out of a James Bond movie,” underscoring the contrast between the digital nature of stablecoins and the very physical reality of bullion storage.
How Much Gold Does Tether Hold?
Tether currently controls around 140 metric tonnes of gold, valued at approximately $24 billion. This makes the company one of the largest known private holders of the precious metal, outside of governments, central banks, and major gold-backed exchange-traded funds.
Part of this gold serves as corporate reserves, while another portion backs XAUT, Tether’s gold-linked stablecoin. XAUT has a market capitalization of roughly $2.7 billion, with each token representing ownership of physical gold held in secure vaults, according to CoinGecko data.
To put the scale into perspective, 140 tonnes equals roughly 4.5 million troy ounces of gold. If Tether were a sovereign country, it would rank within the top 40 globally for official gold reserves—ahead of many national central banks.
Tether’s Gold Buying Outpaces Nations
Tether’s pace of accumulation has exceeded that of countries such as Greece, Qatar, and Australia. In the final quarter of 2025 alone, the company added 27 tonnes to its holdings. Over the full year, purchases surpassed 70 tonnes, more than any country except Poland.
Analysts at Jefferies have described Tether as a “significant new buyer” whose entry into the market has helped support global demand during the recent gold rally.
Why Gold Is Surging
Gold prices have climbed sharply amid heightened geopolitical tensions, persistent inflation concerns, and uncertainty over interest rate policy in major economies. Central banks and ETFs together bought more than 1,500 tonnes last year, with Poland, Kazakhstan, Brazil, and Azerbaijan among the most active buyers, according to the World Gold Council.
John Reade of the organization noted that while Tether has contributed to rising demand, it is “one important component rather than the sole driver” of the rally.
Beyond Storage: Trading and Strategy
Tether is not limiting itself to passive accumulation. The company has hired senior gold traders from HSBC and is preparing to actively trade its own bullion, exploiting arbitrage opportunities across markets.
Ardoino has gone as far as to suggest that Tether is evolving into something resembling a private gold-backed monetary institution, arguing that geopolitical rivals of the United States may increasingly seek alternatives to the US dollar—potentially backed by gold.
Founded in 2014, Tether rose to prominence as the issuer of USDT, the world’s most widely used stablecoin. While initially focused on dollar-backed digital tokens, the company has steadily expanded into commodities, infrastructure, and alternative reserve assets, with gold now playing a central role in its long-term strategy.
Image by Matthias Wewering from Pixabay