Tether’s $8B Gold Hoard in Swiss Vaults Rivals Banking Giant UBS

Tether just flexed its reserves harder than a central bank—stacking $8 billion in physical gold across Swiss vaults. That’s UBS-level exposure without the paperwork.

Bullion-backed stability? The stablecoin issuer’s playing 4D chess while traditional finance still solves checkers. Gold reserves now match Switzerland’s largest bank—take that, fiat maximalists.

One vault key twist? This isn’t your grandpa’s safe-haven asset. Tether’s proving crypto’s institutional clout while Wall Street still debates ‘digital gold’ ETFs. Ironic, isn’t it?

*Cynical finance jab: Meanwhile, your local bank’s ‘gold-backed’ savings account yields 0.2%—before inflation vaporizes it.*

Regulatory headwinds in key markets

Lawmakers on both sides of the Atlantic are moving in the opposite direction. Draft US bills such as the GENIUS Act and Europe’s Markets in Crypto-Assets (MiCA) framework allow only cash or near-cash instruments to collateralize fiat-referenced stablecoins, excluding commodities like gold.

If those rules take effect and Tether seeks licenses in those jurisdictions, it WOULD have to liquidate the bullion that backs USDT, although the company could retain metal tied to its gold-backed token, XAUT.

Notably, MiCA granted licenses to 53 crypto firms in the first six months of regulation .

XAUT circulates against 7.7 tons of gold, worth approximately $819 million, which is well below the 950-ton giant among exchange-traded gold funds but large enough to make redemptions viable at vault doors in Switzerland.

Ardoino said demand could accelerate if investors lose confidence in US fiscal sustainability and seek alternatives that avoid bank-deposit risk while remaining on-chain.

Market context and outlook for bullion-linked tokens

Spot gold has advanced by roughly 25% in 2025 as traders hedge tariff-driven trade friction and wider geopolitical tension.

Ardoino said:

“Every single central bank in the BRICS countries is buying gold, so that is why the price went up in our opinion.”

Tether must still convince regulators that a metal-heavy reserve would not impede USDT’s liquidity under stress.

For now, the firm holds the metal, earns yield on Treasurys, and keeps a separate token directly convertible into vaulted bars, combining traditional bullion economics with blockchain settlement.