Tether Holds $8 billion worth of gold in a secret vault in Switzerland

[akar87]

Happycoin.club - Tether CEO Paolo Ardoino stated that the company stores $8 billion worth of gold in "the most reliable vault in the world." He did not specify the exact location of the precious metal reserve, but said it was Switzerland.

At the moment, the issuer of the USDT stablecoin owns almost 80 tons of gold, most of which belongs directly to the company. With such a large reserve, Tether is one of the largest holders of gold in the world, not counting banks and states.

In an interview with Bloomberg, Ardoino said that the decision to create its own storage facility instead of paying storage operators was dictated by the recent increase in the value of gold.

" Gold, in my opinion, should logically be a more reliable asset than any national currency. Therefore, I think if people start to worry about a possible increase in the US debt, they may pay attention to alternatives," - Ardoino said.
According to Trading Economics, the price of gold has increased by 38.5% over the past year. On April 21, it also reached a new all-time high of $3,390. At the time of writing, the price of the precious metal has dropped to $3289.

[Charles-Tim]

I read the news few days ago or so. It is worth knowing that XAUT is not gold, it is considered now as tokenized RWA which is gold. So XAUT is a tokenized gold and not real gold.

But if Tether continue to buy the real gold, maybe the price of XAUT will be very stable to the price of real gold. I am not certain of what can happen in the future.

[Natalim]

That actually makes it more solid compared to being backed purely by fiat. Gold is very stable, no matter where it’s stored or who owns it, its value holds up over time. With the recent news about gold shooting up, that move makes Tether look more reliable, since they’re clearly trying to make sure customer funds are properly backed.

And since Tether is regulated, the government has to verify this anyway. That means the gold has to actually exist and be accounted for as part of the reserves backing the stablecoin, not just something they claim on paper.