Tether CEO aims to allocate up to 15% of its portfolio to gold

By Polina Devitt

LONDON, Jan 28 (Reuters) - Tether plans to allocate 10%–15% of its concern portfolio to carnal gold, the crypto group's CEO Paolo Ardoino said, adding to the ​bullion which it says already backs immoderate of its products.

El Salvador-headquartered Tether said it ‌has astir 130 metric tons of carnal golden to backmost its products, aft adding 27 tons successful the 4th quarter. ‌Ardoino told Reuters that it has been buying astir 2 tons a week.

"For our ain portfolio, it's tenable that we are going to person astir 10% successful bitcoin and 10% to 15% successful gold," Ardoino said, without disclosing the worth of Tether's concern portfolio oregon however overmuch of it was held successful ⁠physical gold.

"It's hard to determine which ‌one I similar the most. It is astir similar you person 2 children and person to determine which 1 is much beautiful," helium added successful ‍a video interview.

Tether, which wants to support ownership of the carnal golden stored successful Switzerland, does not person a people for bullion buying and plans to marque this determination connected a quarterly basis.

Ardoino said Tether has been ​buying a batch of golden with its profits, having started successful 2020 during the COVID-19 pandemic ‌and continued to bargain arsenic geopolitical tensions roseate successful its wake.

"The satellite is not successful a blessed spot astatine this moment. Gold is making all-time highs each azygous day. Why? Because everyone is scared," Ardoino said. Last twelvemonth the golden terms jumped 64%.

Tether said it bought ample amounts of golden past twelvemonth to backmost the Tether USDT stablecoin, a integer dollar with $186 cardinal worthy of tokens ⁠in circulation, and the Tether XAUT golden token, with $2.7 ​billion successful circulation.

Gold prices person risen 22% truthful acold this ​year, hitting a grounds precocious astatine $5,311 a troy ounce connected Wednesday connected buying triggered by falling assurance successful the dollar and concerns astir the independency of the ‍U.S. Federal Reserve.[GOL/]

Tether, which ⁠Ardoino said employs astir 250 people, invests the reserves backing up its USDT stablecoin successful U.S. Treasury bills and different assets.

Ardoino said helium expects Tether's 2026 nett to transcend the $10 ⁠billion it is estimated to person earned successful 2025 and perchance the $13.7 cardinal earned successful 2024.

Tether has besides invested its ‌own profits successful U.S. Treasuries, bitcoin, the tech sector, golden royalty firms and different ‌assets.

(Reporting by Polina Devitt; Editing by Alexander Smith)