Tether will become ‘gold central bank’ in post-dollar world, CEO Ardoino says

Tether, a prominent player in the cryptocurrency market, is poised to transition into a significant financial entity in a post-dollar economy, according to its CEO, Paolo Ardoino. The company currently holds an impressive reserve of approximately 140 tons of gold, which equates to a valuation of around $23 billion. This gold is securely stored in a specialized facility in Switzerland, known for its robust security measures, including a nuclear bunker.

In his recent statements, Ardoino articulated a vision for Tether to evolve into what he describes as a "gold central bank." This ambitious plan underscores the company's strategy to leverage its substantial gold reserves as a stable asset in a world where the U.S. dollar's dominance may decline. Tether has long been known for its stablecoin, USDT, which is pegged to the U.S. dollar, but this new direction suggests a pivot towards a commodity-backed financial model.

The move towards gold is not merely a speculative venture. With increasing concerns about inflation and the potential for economic instability, Ardoino believes that gold-backed assets will provide a hedge against traditional fiat currencies. The company aims to offer a more reliable alternative for investors seeking stability in a volatile market.

Furthermore, Tether's gold holdings may play a crucial role in its future operations, potentially allowing the company to issue new forms of stablecoins backed by its physical gold reserves. This could enhance the appeal of Tether's offerings amidst growing interest in digital assets tied to tangible commodities.

As the global financial landscape continues to evolve, Tether’s strategic pivot towards gold highlights the company's commitment to adapting to changing economic conditions and investor preferences. By positioning itself as a foundational player in a potentially gold-centric financial ecosystem, Tether may redefine its role within the cryptocurrency space.

Key Takeaways

Tether CEO Paolo Ardoino envisions the company as a "gold central bank" in a post-dollar economy.
The company holds approximately 140 tons of gold valued at around $23 billion, stored in secure facilities in Switzerland.
Tether aims to use its gold reserves to provide stability and confidence in a volatile market.
The potential issuance of gold-backed stablecoins could enhance Tether’s offerings and appeal to investors.

This article was inspired by reporting from The Block. · Report an issue