Tether's Gold Strategy Shift Raises Questions
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Tether's recent announcement to allocate 10-15% of its $20 billion proprietary portfolio to physical gold, coupled with reported profits exceeding $10 billion for 2025 and $6.3 billion in excess reserves, initially signaled a strategic diversification into tangible assets. The hiring of two precious metals traders from HSBC to establish a gold trading desk appeared to reinforce this commitment, potentially enhancing reserve transparency and stability.
However, the abrupt closure of this desk weeks before auditors' arrival introduces uncertainty. This timing raises questions about operational execution and internal alignment, despite the strong financial metrics. Market observers will monitor whether this represents a temporary adjustment or a shift in Tether's asset management approach, particularly given the stablecoin issuer's significant role in crypto liquidity.
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