Gold Over Bitcoin? Tether’s $8B Bet Sparks Inflation Hedge Debate

Key Insights

• Tether has stockpiled nearly 80 tons of gold, valued at approximately $8 billion, into a secret vault in Switzerland.
• This gold reserve represents less than 5% of Tether's total USDT reserves of more than $159 billion.
• The timing aligns with gold's rally (over 38% in the past year) and its rising demand as a safe-haven asset.
• Despite this move, Tether continues to face criticism for its lack of a full, independent audit.

Tether, the largest stablecoin issuer in the world, has made headlines once again.

This time, it has consolidated nearly 80 tons of gold, worth approximately $8 billion, into a secure vault in Switzerland.

While this move might seem like a major step to reinforce the company’s reserves, it also poses some very important questions about Tether and transparency.

Here’s what this development means for the crypto industry.

Betting So Much On Gold

Tether has long been associated with gold, especially after the launch of its gold-backed token, Tether Gold (XAUT), nearly two years ago.

According to its Q1 report, the company revealed that it held 7.7 tons of gold.

Fast-forward to July 2025, and Tether has now acquired an additional 0.3 tons. This development has brought its holdings to nearly 80 tons.

According to the company’s CEO, Paolo Ardoino, the gold is now housed in a single, undisclosed vault in Switzerland.

Ardoino described the vault as “the most secure in the world,” and according to him, gold is a safer asset than any national currency.

This is especially true with the ongoing rise in geopolitical uncertainty and sovereign debt around the world.

Gold's Rising Value Strengthens the Strategy

The timing of Tether’s gold consolidation couldn’t be better. Over the past year, gold has rallied by more than 38%.

The asset hit a historic all-time high of $3,390 per ounce in April. At the time of writing, the price stands at around $3,289, with this surge being largely attributed to increased buying from central banks.

Even the BRICS nations are increasing their gold stockpiles, amid rising worries about inflation and debt in most economies.

Ardoino suggested that the worldwide shift toward safe-haven assets like gold is a direct response to fears around the U.S.’ debt levels.

In this context, Tether’s decision to stockpile gold isn't just about diversification.

It is a well calculated hedge against the possible weakening of fiat currencies, including the U.S. dollar.

A Fraction of a Much Bigger Picture

Despite the impressive headline of $8 billion in gold reserves, this stockpile accounts for less than 5% of Tether’s total USDT reserves.

For context, the USDT reserves stand as more than $159 billion in circulation.

Tether’s Q1 2025 report also indicated it held $98 billion in U.S. Treasury bonds, which is a number that likely has grown since.

In short, gold is only a small component of Tether’s overall asset portfolio.

While this is certainly very impressive for Tether and its investors, this development doesn’t fully address the real issues about how well the USDT token is actually backed.

Tether currently has no independent audits to confirm that it holds the reserves it claims it does.

As a result, concerns about transparency are now running wild.

The Audit Controversy

One of the biggest issues haunting Tether is its lack of a full, independent audit.

For years, regulators, analysts and community members have urged the company to open its books and provide proof that every USDT token is truly backed by real assets.

Despite multiple promises and even threats from U.S. authorities, Tether has yet to conduct such an audit.

Many within the crypto community see the gold vault news as a possible smokescreen, or an attempt to shift attention away from the elephant in the room.

Some argue that even with its large reserves, Tether’s lack of transparency could become a liability, especially as its role in the worldwide financial system continues to grow.

If USDT is to be a major part of dollar dominance in the digital economy, then regulatory and user trust are non-negotiable.

Overall, the fact of the matter remains that until Tether provides a transparent and independent audit of its full reserve structure, there will always be questions about the actual backing of USDT.

In the end, while gold certainly glitters, trust depends on clarity to thrive.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.