Tether CEO Paolo Ardoino recently made a noteworthy declaration on social media, asserting that “Bitcoin and Gold will outlast any other currency.” This succinct statement reflects Tether’s strategic positioning of its reserves, particularly over the last two years. Starting May 17, 2023, Tether announced it would allocate up to 15% of its net realized operating profits to acquire Bitcoin for its reserves, underscoring a commitment to bolster its balance sheet with what it regards as a long-term store of value.
Both Bitcoin and gold are seen as essential components of Tether’s financial strategy. The company issues Tether Gold (XAUt), a token that promises a direct link to allocated gold bars, with over 7.66 tons of metal backing its tokens as of June 30, 2025. In a recent report by CoinDesk, Tether has even explored investments across the gold value chain—ranging from mining to refining—as part of its diversification efforts.
Ardoino has previously linked Bitcoin, gold, and real estate as hedges against market fluctuations. He has reaffirmed Tether’s commitment to expanding its Bitcoin holdings, contrary to any speculation that Tether might sell BTC to enhance its gold reserves. His latest remarks appear to reinforce Tether’s strategy, which includes Bitcoin as a key asset acquired through profits, with gold serving as a valuable counterpart through tokenization and potential upstream investments.
As of now, Bitcoin and gold have experienced impressive gains this year, rising 22.79% and 52.91%, respectively, while the U.S. dollar index has seen a decline of 8.88% year-to-date, as reported by MarketWatch.
The upcoming reserve report, anticipated later this month or early next month, will provide further insights into whether Tether has adjusted its allocations toward Bitcoin and gold in response to the current market dynamics.
Tether’s Strategic Asset Allocation: Bitcoin and Gold
The following key points highlight Tether’s focus on Bitcoin and Gold as long-term store of value:
- CEO Statement: Paolo Ardoino claims that “Bitcoin and Gold will outlast any other currency.”
- Profit Allocation: Tether plans to allocate up to 15% of net realized operating profits to purchase Bitcoin.
- Reserves Strategy: BTC is added to surplus rather than backing circulating USDT directly, aimed at strengthening balance sheets.
- Gold Tokenization: Tether issues Tether Gold (XAUt), with over 7.66 tons of allocated bars backing outstanding tokens.
- Diversification in Gold: Tether is exploring investments across the gold value chain, including mining and refining.
- Asset Grouping: Ardoino views Bitcoin, gold, and land as hedges against economic uncertainty.
- Reserve Composition: Despite expanding into BTC and gold, most reserves remain in liquid instruments like U.S. Treasurys.
- Market Performance: As of the latest data, Bitcoin and gold have outperformed the U.S. dollar index year-to-date, indicating a shift in value perception.
This strategic focus on Bitcoin and Gold may impact readers by influencing their investment choices, showcasing the importance of diversifying assets as a hedge against fiat currency fluctuations.
Tether’s Strategic Asset Allocation: A Comparative Analysis
Tether’s recent reaffirmation of its commitment to Bitcoin and gold as long-term reserves positions the company uniquely within the stablecoin sector. While many firms are heavily reliant on traditional fiat currencies, Tether’s approach could give it a competitive edge during economic uncertainty, particularly as Bitcoin and gold have gained traction as hedges against inflation. This strategy highlights the advantages of diversification and the potential resilience of digital and precious assets in a volatile market.
In contrast, competitors like Circle, which issues USDC, primarily focus on traditional fiat backing for their stablecoins. This approach may provide stability but lacks the long-term growth potential associated with cryptocurrencies and metals. Consequently, Tether’s strategy may attract investors looking for innovative alternatives amid ongoing market shifts, particularly those who are disillusioned with traditional financial instruments.
However, Tether’s reliance on Bitcoin and gold is not without risks. The inherent volatility of Bitcoin poses a threat to its perceived stability as a reserve asset, which could alienate risk-averse investors. Moreover, market fluctuations in gold prices could similarly impact Tether’s overall valuation and reliability. Therefore, while Tether’s dual-asset strategy positions it favorably against more traditional competitors, it also carries the burden of potential instability that could deter conservative investors.
This approach could particularly benefit tech-savvy investors and those in the cryptocurrency space, who seek exposure to digital assets alongside traditional commodities. Conversely, institutional investors, accustomed to more stable backing, may find Tether’s model problematic if the volatility of Bitcoin undermines their confidence in the stablecoin’s value proposition. The impending reserve report will be crucial in determining whether Tether’s reallocation strategy enhances or complicates its market position moving forward.
