Tether holds $8 billion worth of gold in its own vault in Switzerland, according to Bloomberg. The firm has also invested in the analytics company Crystal Intelligence to combat illegal USDT transactions.
In an interview with the publication, Tether CEO Paolo Ardoino revealed that the company directly owns nearly 80 tonnes of gold. This positions it as one of the largest holders of the precious metal globally, excluding banks and governments.
The company head added that the facility is located in Switzerland, though he declined to disclose the exact location for security reasons. The decision to build its own vault instead of using third-party services was made for cost-saving purposes.
Ardoino considers gold a more reliable asset than any national currency. He noted that interest in the metal is growing amid concerns over the US national debt and increased purchases by BRICS central banks.
Precious metals account for nearly 5% of Tether’s reserves. However, regulators in the EU and the US are pushing for rules requiring “stablecoins” to be backed only by cash and cash equivalents, excluding gold. If Tether seeks to operate in such jurisdictions, it may need to sell part of the gold backing USDT.
Investments in Security
Alongside strengthening its reserves, Tether is bolstering its compliance efforts. A strategic investment in blockchain analytics firm Crystal Intelligence aims to enhance risk monitoring and fraud detection.
Previously, both companies collaborated on the Scam Alert platform, which tracks wallet addresses linked to fraudulent activities in real time.
“Tether is firmly committed to supporting law enforcement in combating illegal activities. This investment will strengthen our capabilities for more effective collaboration,” Ardoino emphasized.
The company has already assisted 255 law enforcement agencies in 55 jurisdictions, including the FBI and the US Secret Service. At the request of authorities, Tether has frozen over $2.7 billion in USDT linked to illegal activities.
Meanwhile, The Economist described the stablecoin as a “dream currency” for money launderers.
Back in June, a company affiliated with the issuer, Tether Investments, acquired a 31.9% stake in the gold mining company Elemental Altus Royalties.