In an interview, Tether CEO Paolo Ardoino revealed that the firm directly owns close to 80 tons of gold, making it one of the largest private holders of the metal worldwide, outside of banks and governments. He confirmed the vault is located in Switzerland but declined to disclose its exact location for security reasons. The decision to build and operate its own facility, instead of relying on third-party services, was driven by cost considerations.
Ardoino described gold as a safer asset than any national currency, noting that demand for it is increasing amid concerns over U.S. debt levels and growing purchases from BRICS central banks. Precious metals now make up about 5% of Tether’s reserves. However, regulators in the U.S. and EU are pushing for stablecoins to be backed strictly by cash and equivalents, which would exclude gold. If Tether seeks approval in those jurisdictions, it may be forced to reduce or sell part of its gold holdings tied to USDT reserves.
Alongside strengthening reserves, Tether has been ramping up compliance. Its investment in Crystal Intelligence is aimed at improving risk monitoring and fraud detection. The two firms previously worked together on Scam Alert, a platform that tracks wallet addresses tied to fraudulent activity in real time.
“Tether is fully committed to supporting law enforcement in the fight against illegal activity. This investment expands our ability to cooperate more effectively,” Ardoino stressed.
So far, Tether has assisted 255 law enforcement agencies across 55 jurisdictions, including the FBI and U.S. Secret Service. At the request of authorities, the company has frozen more than $2.7 billion worth of USDT linked to illicit activity.