- Tether’s $8B gold vault signals a big move to protect its reserves and lower long-term costs as token adoption grows.
- Tether boosts crypto safety with a new Crystal Intelligence deal and has frozen $2.7B in stolen USDT linked to global crimes.
- With rising scams and market risks, Tether combines gold security and AI-powered tools to defend users and support law enforcement.
Tether has quietly built a gold reserve worth $8 billion, stored in a private Swiss vault. This move, confirmed by CEO Paolo Ardoino, makes Tether one of the largest gold holders outside of governments and banks. The stash, about 80 tons in total, supports Tether’s ongoing plan to hedge against fiat instability. While gold only makes up 5% of Tether’s $112 billion reserves, Ardoino views it as a safer bet than national currencies. He believes concerns around U.S. debt could drive people toward alternative stores of value like gold.
The Swiss vault remains secret, with Ardoino citing security reasons. However, he stressed that owning a vault helps Tether cut high storage fees. With Tether Gold gaining traction, vault ownership ensures better long-term cost control if token adoption increases. Moreover, gold prices have climbed lately due to strong central bank buying and renewed investor interest in gold ETFs. Ardoino noted BRICS nations continue loading up on gold, reinforcing its appeal as a global hedge.
Tether Doubles Down on Crime-Fighting Tech
Besides strengthening its asset base, Tether is scaling its crime prevention efforts. The company has invested in Crystal Intelligence, a top blockchain analytics firm. This deal boosts Tether’s ability to fight scams, track funds, and support global regulators. In 2024 alone, crypto-related scams cost U.S. investors over $9.3 billion, a massive 66% jump from the previous year.
Consequently, Tether’s efforts are becoming more critical. The firm has already frozen over $2.7 billion in USD₮ linked to criminal activity. It works closely with more than 255 law enforcement agencies across 55 countries, including the FBI and U.S. Secret Service.
Additionally, Tether and Crystal Intelligence have co-developed Scam Alert, a real-time scam tracking platform. This tool publicly flags suspicious wallet addresses and helps users avoid fraud.
