Share This Article
Physical gold and virtual liquidity: a new paradigm
The world of cryptocurrencies continues to move closer to traditional finance through increasingly structured strategies. A striking example is Tether, a company best known for issuing the USDT stablecoin, which has embarked on a policy of the accumulation of physical gold worthy of a central bank.
Tether and gold reserves: sovereign-level figures
According to an analysis by Jefferies, a US investment bank cited by the Financial Times, Tether currently holds 116 tonnes of physical gold.
An amount that places the private company on a par with countries such as Greece, Hungary and South Korea in terms of gold reserves.
Unlike many indirect financial exposures, these are real gold bars, stored in Swiss vaults and potentially redeemable. This choice echoes the traditional value-preservation policies adopted by monetary institutions, especially in a context of inflation and fiat-currency instability.
The impact on the gold market
The effect on the market was swift.
In the most recent quarter, Tether accounted for around 2% of global gold demand, amounting to as much as 12% of the total purchases by central banks.
According to Jefferies, this aggressive strategy has helped reduce short-term supply, supporting the rally in gold prices.
Future goals: another 100 tonnes by 2025
Growth prospects are even more ambitious. Rumours suggest a possible increase of a further 100 tonnes of gold reserves within 2025. With estimated annual profits of around USD 15 billion, Tether has the liquidity required to support this expansion, especially if demand for USDT continues to rise.
Management similar to that of a central bank
Tether’s operational structure further reinforces comparisons with a central bank.
The company’s portfolio includes:
- Short-term US government bonds
- Physical gold
- Bitcoin
By issuing and redeeming USDT, Tether adjusts the supply of digital money in line with market demand, generating profits both from interest on Treasuries and from the appreciation of the assets it holds.
From tokenized gold to mining production
Tether is not limited to holding reserves. It has invested more than USD 300 million in companies involved in the extraction and production of precious metals and holds stakes in royalty firms such as Elemental Altus Royalties.
This approach allows Tether to control not only the tokenization of gold, but also parts of the production chain of the physical metal.
Between DeFi and centralization: the regulatory dilemma
The union between traditional gold reserves and blockchain technology has given rise to a true private “financial fortress.”
While supporters of decentralized finance (DeFi) criticise this level of centralisation as a departure from the original spirit of cryptocurrencies, Tether is consolidating a role increasingly similar to that of a global monetary power.
The real question remains the regulatory future: will international regulators allow a private entity to wield influence comparable to that of a central bank?
