Tether Keeps $8 Billion Worth of Gold in a Private Swiss Vault, What’s the Purpose?

Jakarta, Pintu News – Tether Holdings, the issuing company of the Tether stablecoin (USDT), recently announced that it holds $8 billion worth of gold in a private vault in Switzerland.

This move marks Tether’s significant efforts in securing valuable assets to back the value of USDT that is widely circulated in the global market.

With USDT emissions totaling $159 billion, the presence of this large amount of gold is an important highlight in Tether’s financial strategy.

Check out the full information in this article!

Tether Personal Gold Vault

Tether has chosen to consolidate its gold reserves in one highly secure location in Switzerland, which is managed and controlled by the company itself. This decision not only reduces storage costs but also increases the security of these valuable assets.

Tether CEO Paolo Ardoinio emphasized that having a private vault allows the company to be more efficient in terms of cost and security. With nearly $8 billion worth of gold stored, Tether is now one of the largest gold holders in the world, on par with major banks and governments.

This shows how serious Tether is about managing the assets that guarantee the value of USDT, although there are still questions about the overall audit of their reserves.

Read also: Ethereum (ETH) 2025 Prediction: Potential to Jump 160%?

Gold-based Products and Regulation

In addition to USDT, Tether also offers the XAUT product, a digital token backed by real gold. Each XAUT token represents one ounce of gold that can be claimed in Switzerland. To date, Tether has issued tokens backed by 7.7 tons of gold.

They offer an attractive investment alternative for cryptocurrency users looking for a resilient asset amid market fluctuations. However, new regulations in the European Union and the United States demand that stablecoins should only be backed by cash or short-term government bonds, not gold or other assets.

This may force Tether to adjust their backup strategy if they want to continue operating in the region. These regulatory changes demonstrate the complex dynamics between financial innovation and regulatory compliance.

Also read: Gold Jewelry Price Today, Wednesday July 9, 2025

Community Reaction and the Future of Tether

While the announcement of the gold vault has been received with praise for Tether’s public achievement, some community members feel that this only distracts from the more pressing issue of a full audit of Tether’s reserves.

These concerns arise because Tether has yet to conduct the long-promised audit, despite the urging of the US legal system. Tether’s future in global dollar dominance is likely to be heavily influenced by how they handle these questions.

With substantial assets and profitable operations, Tether remains a key player in the cryptocurrency market. However, transparency and regulatory compliance will be critical factors in maintaining user confidence and USDT value stability.

Conclusion

Tether’s consolidation of gold in Switzerland is not only a security measure, but also a smart financial strategy. However, regulatory challenges and the need for comprehensive audits remain important issues to be addressed to ensure sustainability and trust in their operations.

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Reference

• BeInCrypto. Tether Stores $8 Billion in Gold in Its Own Swiss Vault. Accessed on July 9, 2025
• CryptoTimes. Tether Stores $8 Billion in Gold in Its Own Swiss Vault. Accessed on July 9, 2025
• Featured Image: Medium