USDT Strengthens Stability with Expanded Gold Reserves Amid Market Volatility
Tether Holdings Ltd. is significantly increasing its physical gold reserves as a strategic hedge against market volatility, with nearly 5% of its $159 billion stablecoin reserves now allocated to precious metals. CEO Paolo Ardoino disclosed that the company has developed proprietary vaulting infrastructure to avoid custodial fees, which typically cost 50 basis points in the bullion market. This move positions Tether's gold holdings to rival those of major financial institutions like UBS Group AG, underscoring its commitment to stability and resilience in the cryptocurrency sector.
Tether Expands Gold Reserves as Strategic Hedge Against Market Volatility
Tether Holdings Ltd. is doubling down on physical Gold as a core reserve asset, with nearly 5% of its $159 billion in stablecoin reserves now allocated to precious metals. Chief Executive Paolo Ardoino revealed the company has built proprietary vaulting infrastructure to bypass custodial fees that typically cost 50 basis points in the bullion market.
The stablecoin issuer's gold holdings now rival UBS Group AG's disclosed reserves, placing Tether in a league traditionally dominated by central banks. This move comes as regulators in the US and EU scrutinize stablecoin operators' reserve management practices amid growing systemic importance.
Cardano Founder Confirms Ongoing Talks with Circle and Tether for Stablecoin Integration
Charles Hoskinson, founder of Cardano (ADA), has reaffirmed discussions with Circle and Tether—issuers of USDC and USDT—about potential stablecoin integration into the Cardano ecosystem. These talks, occurring monthly with Circle and repeatedly with Tether, aim to bolster Cardano's decentralized finance (DeFi) landscape.
Hoskinson tempered expectations, noting that mere inclusion of these stablecoins won't instantly supercharge Cardano's ecosystem. The dialogue traces back to 2021, with initial reluctance from both firms to deploy their assets on the blockchain.
Market observers speculate that successful integration could catalyze ADA's price momentum, though Hoskinson remains pragmatic about the incremental nature of such developments.
Tether Amasses $8B Gold Reserves in Swiss Vaults to Diversify Beyond Fiat
Tether Holdings Ltd. has quietly accumulated one of the world's largest private gold reserves, stashing approximately 80 metric tons of bullion worth $8 billion in a secure Swiss vault. The stablecoin giant's physical gold holdings now rival UBS Group AG's total precious metals exposure, representing a strategic shift toward hard assets.
Chief Executive Paolo Ardoino revealed the stockpile constitutes just 5% of Tether's $112 billion reserves, with the majority held in US Treasury bills. "We own our vault outright—it's the most secure in the world," Ardoino told Bloomberg, declining to disclose the facility's location due to security concerns.
The gold accumulation signals Tether's growing caution toward fiat currencies amid mounting US debt concerns. "Gold remains the ultimate SAFE haven when national currencies face turbulence," Ardoino noted, suggesting institutional investors may increasingly turn to precious metals as debt worries mount.
The move coincides with surging gold prices fueled by central bank purchases and renewed ETF inflows, as noted in recent J.P. Morgan research. Tether's USDT stablecoin now commands 62.4% market share across all stablecoins, with its $159 billion capitalization reflecting dominant positioning in crypto markets.
