Tether Keeps $8 Billion in Gold in a Secret Swiss Vault

Happycoin.club Tether's CEO, Paolo Ardoino, revealed that the company is holding $8 billion in gold stored in what he calls "the most reliable vault in the world." While he didn’t give the exact spot where this treasure is kept, he mentioned it’s in Switzerland. Right now, Tether, the issuer of the USDT stablecoin, has nearly 80 tons of gold, most of which is owned by the company itself. With such a massive stash, Tether ranks among the largest gold holders globally, excluding banks and governments. In a chat with Bloomberg, Ardoino explained that they opted to build their own storage facility instead of relying on other storage providers due to the recent surge in gold value. "I believe gold should logically be viewed as a more trustworthy asset than any fiat currency. So, if people start to get anxious about the rising US debt, they might consider alternatives," Ardoino noted. Trading Economics reports that gold prices have jumped by 38.5% over the last year, hitting a new all-time high of $3,390 on April 21. As of now, the price has dipped to $3,289.

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.

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.

The current price of gold is somewhere around 4.5K USD per troy ounce. I wouldn't be surprised if gold reached 5K USD soon. I don't trust a single word by anyone, who is involved with Tether. That guy would've told us that they hold 80 billion USD worth of gold instead of 8 billion and I still won't believe him. It's all promises and lies. there's no proof. It's weird that he praises gold as an alternative of the US dollar, instead of Bitcoin. Why Tether isn't tied to gold, rather than being tied to the US dollar? What's the point of being tied to a fiat currency, which loses value on a daily basis?

The CEO of the organization praises gold in comparison with treasuries (i.e., in fact, with the dollar), and this organization issues USDT, which is nothing more than a "tokenized dollar" - a stablecoin secured in the same treasuries. Strange logic. Well, the presence of mythical gold, located in mythical vaults in Switzerland (why not in the States?) - It looks strange for an American organization. In other words, this is equivalent to saying that storing gold in the United States is unreliable. Or maybe the explanation is simpler - there is simply no gold at all (or much less).

Having reserves in the form of gold is indeed very good. Moreover, we all know that gold is an asset that is not affected by inflation at all. We have seen that gold has retained its value throughout the ages. So, yes, having gold as a reserve asset can indeed bring stability to a company. However, the problem is how to audit it. Is the amount correct or not? Or has it been audited? I apologize, I have not read the news report in full. But honestly, I'm impressed with what Tether has done. They bought a large amount of gold and are currently the largest holder of gold. This shows that they themselves trust gold more than anything else. And that's a good thing.

Certainly, with increasing geopolitical instability, the price of gold reaching $5k is inevitable. Because ultimately, it remains the most reliable safe haven to date. Whether you believe them or not, and whether they are lying or not. The truth is that USDT remains the stablecoin with the largest market capitalization, despite the controversies surrounding it over the years. They are accumulating gold is not intended to back USDT. They have a bigger plan, which is to build a tokenized gold ecosystem.

Their mythical 1:1 ratio of USDT and USD was strongly believed to be backed by mythical USD. LOL! Anyway, for whatever it's worth, his reasoning seems sound. He should know. He's leading a huge company that used to mint a USD-like currency out of thin air. If USD itself is printed out of thin air and a digital copy could also be minted out of thin air, then gold must be a world more reliable. And a company that has got billions should worry and look for solid alternatives. It already has billions in Bitcoin. It could be true it has billions in gold as well.

There is a saying that says "the more flour there are, the more types of cakes you can make." The rich get richer, that's how economic life is today, where the poor seem to have no hope for their economic revival, being poor, just waiting for death to come, that is true wealth, never enjoying a decent life in this world. Yes, we know that Switzerland has become a target for developing countries in storing assets. If the bank that is famous in the world is Swiss Bank, we understand that the company or CEO of Tether really knows that the best investment besides Bitcoin is gold. Of course they do all that, it's no surprise that several superpower countries have the largest gold reserves. This has been a long route in the history of gold with unstoppable prices, currently I see many companies switching investments to gold, it is not surprising that Tether currently owns most of the gold in Switzerland with a total of:

If Tether fails to properly hold and manage the gold reserves, XAUT token holders could face a major shock in the long run, because no one can be certain about what will happen to Tether in the future. When the price of gold rises → the price of XAUT rises When the price of gold falls → the price of XAUT falls Because of this dependency, the whole situation becomes risky.

It's part of investing. It's normal to have risk. That's why they probably chose gold as their reserve, because the risk is smaller compared to international currencies that can decrease in value and be affected by inflation. They also studied that before they started, even if the price of gold drops, it probably won't be that bad. Besides, if they had bought the gold before, they would have been in profit now, so they wouldn't have to worry anymore because their loss would have been less.