Tether is Competing with Central Banks with 140 Tons of Gold.

Tether's Gold Investments

A new factor has emerged in the rise of gold prices. Tether, which holds $24 billion worth of gold reserves worldwide, has become a significant competitor to central banks. According to a report by Bloomberg, the stablecoin provider Tether has accumulated a total of 140 tons of gold, making it one of the largest holders of gold bullion in the world.

The Strategy Behind the Purchases

Tether purchased over 70 tons of gold last year, surpassing the total notifications of central banks worldwide. Analysts indicate that this process has led to a 65% increase in gold prices. Tether's CEO, Paolo Ardoino, described this strategy as functioning like a "gold central bank." Tether aims to redirect the profits it earns from the USDT stablecoin away from U.S. government debt to physical assets that have "no one's debt."

The Secret of the Gold Reserve: Nuclear Shelter

Tether securely stores its gold bars in a former nuclear shelter in the Swiss Alps. The company has employed two senior gold traders from HSBC to manage its trading desk. Ardoino stated that their goal is to establish "the world's best gold trading platform" that can compete with giants like JPMorgan and HSBC.

Future Plans

Tether plans not only to hold physical gold but also to seize arbitrage opportunities when futures prices diverge from the costs of the physical metal. Additionally, it aims to purchase shares in royalty companies like Elemental Royalty and Gold Royalty in order to participate in mining revenue streams.