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Tether plans to raise gold to 10 to 15 percent of its portfolio, potentially exceeding Bitcoin allocation as uncertainty grows.
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The firm holds about 130 metric tons of gold, buying around two tons weekly and reviewing purchases quarterly using profits.
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Record gold prices and weaker Bitcoin support a reserve shift aimed at strengthening confidence in Tether’s 1 to 1 backing.
Tether plans to raise its exposure to physical gold as global markets face growing uncertainty. CEO Paolo Ardoino said the stablecoin issuer aims to allocate 10% to 15% of its portfolio to gold. The move comes as gold prices hit repeated record highs and Bitcoin trades well below its peak.
Portfolio Allocation Shifts Toward Gold
Ardoino said Tether also plans to hold about 10% of its portfolio in Bitcoin. However, he noted that gold may ultimately outweigh Bitcoin within the allocation. Ardoino did not disclose the portfolio’s total value or how much gold is held directly.
Tether operates from El Salvador and issues asset-backed stablecoins pegged to fiat currencies and commodities. Its products include USDT, the largest dollar-backed stablecoin, and XAUT, a gold-backed token. Tether recently launched USAT, a regulated U.S.-based dollar stablecoin.
Notably, Ardoino said reserve strength remains central to maintaining user trust. Stablecoin holders rely on Tether’s ability to redeem assets at a one-to-one ratio. As a result, portfolio composition directly affects confidence in Tether’s products.
Gold Holdings and Buying Strategy
Tether said it currently holds about 130 metric tons of physical gold. The company added 27 tons during the fourth quarter. Ardoino said that Tether has been purchasing roughly two tons per week.
The gold is stored in Switzerland and Tether intends to retain direct ownership. Ardoino said the company does not follow a fixed buying target. Instead, it reviews gold purchases quarterly and uses company profits to fund acquisitions.
Tether began accumulating gold in 2020 during the COVID-19 pandemic. Ardoino said purchases continued as geopolitical tensions increased. He described current conditions as unstable, citing fear-driven demand for gold.
Market Context and Reserve Composition
Gold crossed $5,000 per ounce on Jan. 26 and later reached $5,311. Prices have risen 22% this year after a 64% gain last year. Meanwhile, Bitcoin trades near $89,500, about 30% below its $126,000 peak.
Tether continues investing reserves in the U.S. Treasury bills, Bitcoin, and technology assets. Ardoino said Tether earned an estimated $10 billion in 2025 and expects higher profits in 2026.
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