- Tether recruited HSBC’s metals trading heads to build institution-grade bullion operations inside its $180B reserve stack.
- The issuer has been adding more than 1 ton of gold per week, lifting bullion holdings to about $12B alongside USDT collateral.
- The move tightens the link between stablecoins and physical gold as Tether rolls out XAUT and challenges bank-led metals desks.
Tether Holdings SA is making a strategic move into the global gold market by hiring two of HSBC Holdings Plc’s top precious metals executives. This move signals a deeper integration between traditional finance and digital asset reserves. The appointments reflect Tether’s intention to expand its presence beyond stablecoins into the broader commodities sector.
Related: Tether Targets $20B Raise at $500B Valuation, Expansion Beyond Crypto Planned
Bloomberg reported that Vincent Domien, HSBC’s global head of metals trading, and Mathew O’Neill, the bank’s EMEA precious-metals origination head, are set to join Tether from London. Both ran businesses that helped set pricing and delivery standards for the London market, so bringing them in, signals that Tether wants first-tier execution, not just passive gold storage.
This elevates Tether from being a big buyer to being a structured participant in the metals trade for its own balance sheet.
Bullion Now Sits Alongside Treasuries In A Diversified $180B Reserve
Tether has told markets it is diversifying away from pure Treasury exposure by holding physical gold and issuing Tether Gold (XAUT), which has more than $2 billion in circulation backed by around 1,300 bars.
The latest hires line up with the strategy: the company’s bullion now sits near $12 billion, on top of a reserve book that generated about $13 billion in profit last year and is tracking toward roughly $15 billion in 2025. Putting experienced metals people in charge makes it easier to keep buying at scale without distorting price.
Stablecoins And Gold Keep Converging Through XAUT
Tether’s gold-backed token, XAUT, represents a tokenized claim on vaulted metal and has crossed $2 billion, which is large for a token tied to a single commodity. Growing the off-chain bullion pool allows Tether to keep scaling XAUT without stretching the metal side.
This puts Tether ahead of most stablecoin peers, which stay almost entirely in Treasuries and repos, and it strengthens the narrative that a stablecoin issuer can be a major commodities player at the same time.
Tether reported roughly $13 billion in earnings last year, mostly from reserve income; this year’s run-rate is even higher as interest income stays strong. That cash generation makes it possible to keep adding bullion at a ton-per-week clip while still backing USDT at par.
With gold in a strong multi-year rally, holding metal is also an optional hedge if US rates decline and reserve yields soften.
Related: Tether’s On-Chain Footprint Hits 40% of All Fees Following Supply Surge to $104 Billion
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Source: https://coinedition.com/tether-hires-hsbc-gold-traders-expand-bullion-reserves-lbma/
