Tether Targets Physical Gold With 10–15% Portfolio Allocation

CN
4 hours ago

According to Reuters reporter Polina Devitt, Tether CEO Paolo Ardoino said the company plans to allocate between 10% and 15% of its own investment portfolio to physical gold by the end of 2026, marking a notable expansion of its hard-asset strategy.

Ardoino clarified that the allocation applies only to Tether’s proprietary investment portfolio, which is funded by excess profits, and not to the reserves backing its stablecoin products, such as USDT or the gold-backed token XAUT.

“For our own portfolio, it’s reasonable that we are going to have around 10% in bitcoin and 10% to 15% in gold,” Ardoino told Reuters, framing the move as part of a broader diversification effort.

The Reuters interview, which was a recorded video, cited Ardoino adding:

“It’s hard to decide which one I like the most. It is almost like you have two children and have to decide which one is more beautiful.”

The gold exposure will consist exclusively of physical bullion, stored in secure Swiss vaults and fully owned by Tether. Purchases will be made on a rolling basis rather than through a single large transaction, with portfolio decisions reviewed quarterly.

Tether already holds roughly 130 metric tons of gold, much of which supports its gold-linked products. The company added 27 metric tons in the fourth quarter of 2025 alone and has continued acquiring about two tons per week, even as prices have pushed to record levels.

Ardoino described gold as a hedge against global uncertainty, noting that persistent geopolitical tension and economic unease have fueled strong demand for tangible stores of value.

He also drew a parallel between gold and bitcoin, characterizing both as long-term holdings rather than short-term trades. Many bitcoin supporters draw similarities between BTC and gold, and some are definitely fans of both precious metals and the digital asset.

Also read: Fidelity Moves Deeper Into Crypto With Proprietary Stablecoin

The strategy fits into Tether’s broader investment approach, which channels operating profits—projected to exceed $10 billion in 2026—into assets ranging from U.S. Treasuries and bitcoin to technology ventures and gold-related businesses.

Market observers note that Tether’s steady accumulation could influence physical gold demand, particularly given the scale and consistency of its purchases.

While risks remain, including storage logistics and geopolitical considerations, the use of Swiss vaults and physical ownership may appeal to investors watching gold’s growing role in institutional portfolios.

  • Why is Tether investing in gold?
    The company views physical gold as a hedge against economic and geopolitical uncertainty.
  • How much gold does Tether plan to hold?
    Tether aims to allocate 10% to 15% of its own investment portfolio to physical bullion by 2026.
  • Does this affect USDT reserves?
    No, the gold allocation applies only to Tether’s proprietary portfolio, not stablecoin backing.
  • Where will the gold be stored?
    All bullion will reportedly be held in secure vaults located in Switzerland.

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