Preface

In an era where digital currency is rapidly evolving, Tether CEO Paolo Ardoino has made a bold assertion: Bitcoin and Gold will outlast any other currency. Through a series of strategic decisions, Tether has demonstrated a strong commitment to these assets as a way to enhance its financial stability and value. This article aims to explore the rationale behind Tether's focus on bitcoin and gold, and how these choices reflect broader trends in the financial landscape.

Lazy bag

Tether has committed up to 15% of its profits to bitcoin. Meanwhile, gold tokenization stands as a robust aspect of its reserves strategy.

Main Body

Paolo Ardoino, the CEO of Tether, made headlines with his declaration that both bitcoin and gold are set to outlast traditional currencies. This statement was made on the social media platform X, stirring discussions regarding the enduring value of these assets. Tether, known for its stablecoin USDT, which is traditionally pegged to fiat currencies, has been evolving its reserve strategies to include a diverse set of assets, notably bitcoin and gold.

On May 17, 2023, Tether announced its strategy to invest a significant 15% of its realized operating profits into acquiring bitcoin, not for immediate backing purposes, but as a long-term reserve asset. This move highlights Tether's belief in bitcoin as a store of value and a strategic asset. By holding bitcoin as a surplus, Tether aims to strengthen its balance sheet against potential financial volatilities.

Gold constitutes another pillar in Tether's reserve strategy. The company offers a product called Tether Gold (XAUt), which is a tokenized form of gold backed by real gold bars. As of mid-2025, over 7.66 tons of gold supported Tether's outstanding tokens. Furthermore, Tether has expressed interest in investing across the gold value chain, signifying a diversified approach to its gold-related investments.

This dual approach of leveraging both digital and traditional assets places Tether in a unique position. Ardoino's confidence in both bitcoin and gold stems from their historical resilience as hedges against inflation and economic uncertainties. He refuted any notion that Tether sold bitcoin holdings to accumulate more gold, emphasizing their commitment to growing their bitcoin reserves alongside their gold interests.

The impact of these strategic decisions is notable. While the traditional U.S. dollar index faced a decline, bitcoin and gold showed impressive growth in 2023, with significant appreciation in their values. This performance suggests the growing investor confidence in these assets as a viable alternative to traditional currencies amidst economic turbulence.

The broader cryptocurrency market has experienced volatility, with significant fluctuations observed in trading volumes on centralized exchanges. Despite these challenges, Tether's strategic asset allocation seems to be a testament to its desire to stay robust and adaptable in a rapidly changing financial environment.

Key Insights Table