In a maneuver that redefines institutional custody, Tether has intensified its monthly precious metal purchases to a rate of two tons per week. This strategic move has allowed the firm to consolidate an inventory of 140 tons, valued at approximately $24 billion, being this one of the largest private stockpiles globally.
Paolo Ardoino, CEO of the company, confirmed this Wednesday that the physical gold price and the instability of traditional monetary systems have driven this massive accumulation. To ensure maximum security, the bullion is moved to a repurposed nuclear bunker in Switzerland, protected by multiple reinforced steel doors under a surveillance scheme that the executive compared to a spy movie.
Furthermore, the company seeks to position itself as a sort of private “central bank,” competing directly with sovereign powers in holding safe-haven assets. The impact of these acquisitions is reflected in its dominance over the XAUT token, whose market capitalization has exceeded $2.7 billion thanks to the tangible physical backing provided by the organization’s own infrastructure in Swiss territory.
The battle for supply dominance and nuclear-grade security
Unlike exchange-traded funds that operate with “paper gold,” the firm prioritizes physical holding to eliminate any ambiguity regarding asset ownership. This decision to store reserves in a high-security bunker responds to a risk mitigation strategy against potential systemic crises, ensuring that each digital unit has real backing beyond the reach of conventional banking volatility.
On the other hand, Tether purchasing volume has surpassed the official reserves of countries like Australia or Greece, marking a milestone in the convergence between crypto and commodities. While the market observes a historic rally, the company uses its operating surpluses to shield its balance sheet, using the blockchain as a transparency layer to demonstrate the solvency of its assets held in the Swiss bunker.
What impact does Tether’s massive buying have on gold valuation?
Several analysts suggest that the constant flow of capital toward the yellow metal has helped sustain the current bull market, where the ounce has surpassed $5,260. By removing up to one billion dollars monthly from the circulating market, the firm exerts significant upward pressure on available supply, competing with BRICS central banks in their race for global financial de-dollarization.
In the near future, Tether plans to expand its presence into direct bullion trading, challenging the monopoly of major Wall Street investment banks. Therefore, the metal-backed cryptocurrency becomes a critical instrument for investors seeking digital liquidity combined with the physical security of Europe’s most sophisticated bunker, solidifying a new standard of trust for the next financial century.
