TLDR
- Tether allocates 15% of profits to buy Bitcoin as part of its reserve strategy.
- Tether’s XAUt token is backed by over 7.66 tons of physical gold in reserves.
- Paolo Ardoino views Bitcoin, Gold, and Land as key hedges against volatility.
- Tether explores investments in the gold value chain, boosting its exposure.
Tether CEO Paolo Ardoino recently made a bold statement on X, asserting that “Bitcoin and Gold will outlast any other currency.” This declaration reflects the ongoing strategy Tether has followed over the last two years. By purchasing Bitcoin and increasing its gold exposure, the stablecoin issuer continues to strengthen its financial position. Ardoino’s comments highlight Tether’s belief in these assets as long-term stores of value, alongside traditional liquid instruments.
Tether’s Strategy: Bitcoin and Gold as Core Pillars
Tether has been reinforcing its reserves with Bitcoin and gold, marking these assets as vital parts of its long-term financial strategy. In May 2023, Tether revealed that up to 15% of its net realized operating profits would be used to acquire Bitcoin, further bolstering its balance sheet. This strategic purchase of Bitcoin is designed to strengthen the company’s financial health over time, rather than using the digital asset to directly back the USDT stablecoin.
Gold also plays an essential role in Tether’s reserve structure. The company has issued tokenized gold (XAUt), with more than 7.66 tons of physical gold backing the tokens as of June 2025. This dual approach of using both Bitcoin and gold offers a hedge against economic volatility, with each asset serving as a store of value.
Ardoino’s View on Bitcoin and Gold’s Durability
Ardoino has consistently emphasized that both Bitcoin and gold will remain relevant for the long term. His recent statement on X echoes his previous remarks, reinforcing the idea that these two assets can outlast other currencies. Bitcoin, as a decentralized digital asset, and gold, a historically trusted store of value, are both seen by Tether as stable investments for the future.
In a prior post, Ardoino grouped Bitcoin, gold, and land as hedges against inflation and economic uncertainty. These assets, he believes, provide stability in uncertain markets. Tether has continued to expand its Bitcoin holdings, rejecting rumors that it sold Bitcoin to increase its gold exposure. Instead, the company has focused on growing its Bitcoin reserve alongside its gold-backed token initiatives.
The Growing Role of Gold in Tether’s Reserves
Gold has become an increasingly important asset for Tether in its reserve strategy. The company has not only issued XAUt tokens but has also explored investments across the entire gold value chain. Tether is reportedly looking into mining, refining, and even gold royalties, signaling its broader commitment to diversifying its asset base.
This growing focus on gold is part of Tether’s broader strategy to offer more stability in its reserves. The tokenization of gold allows Tether to leverage the metal’s value while making it more accessible to a global digital economy. The company’s move to build out its exposure to gold aligns with its stance that both Bitcoin and gold are essential assets in the long-term financial landscape.
The Future of Tether’s Reserves
As of now, the majority of Tether’s reserves remain in liquid assets like U.S. Treasurys, ensuring the company maintains liquidity. However, with Bitcoin and gold positioned as strategic assets, the future reserve reports will likely show further increases in Tether’s exposure to both. The next attestation, expected in the coming weeks, will provide further insights into the company’s reserve composition and whether its allocations to Bitcoin and gold have grown.
With Bitcoin and gold continuing to gain value in 2025, Tether’s strategic positioning in these assets reflects its long-term vision. The company’s approach underscores its commitment to strengthening its balance sheet through assets seen as stores of value and hedges against economic uncertainty.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
