LONDON, Jan 28 — Tether plans to allocate 10%–15% of its investment portfolio to physical gold, the crypto group’s CEO Paolo Ardoino said, supplementing the bullion it says already backs some of its products. The group holds about 130 metric tons of physical gold to back its products, after adding 27 tons in the fourth quarter. Ardoino said Tether has been buying around two tons of gold a week.
For its own portfolio, Ardoino said, the company expects roughly 10% in bitcoin and 10%–15% in gold. Tether has invested its reserves in U.S. Treasuries and other assets, and last year it bought large amounts of gold to back the Tether USDT stablecoin, which has $186 billion in circulation, and the Tether XAUT gold token, with $2.7 billion in circulation. Gold prices have risen 22% so far this year, hitting a record high at $5,311 per troy ounce on Wednesday amid buying driven by concerns over the dollar and U.S. Federal Reserve policy.
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