Tether CEO Paolo Ardoino reaffirmed his conviction that Bitcoin and gold will remain the world’s most enduring stores of value, writing on X (formerly Twitter) Sunday (Oct. 12) that “Bitcoin and Gold will outlast any other currency.”
His comment — flagged by CoinDesk — aligns closely with how Tether, the world’s largest stablecoin issuer, has restructured its reserves over the past two years, diversifying beyond short-term U.S. Treasurys into hard assets and alternative stores of value.
“Tether’s strategy reflects a conviction that decentralized and tangible assets can offer more resilience than fiat systems,” said Daniel Harper, senior analyst at CryptoEconomics Research Group. “It’s a signal that the world’s biggest digital dollar issuer is quietly hedging against monetary risk.”
Tether’s Reserve Strategy: From Dollars to Digital Hard Assets
In May 2023, Tether announced it would allocate up to 15% of its net realized operating profits toward Bitcoin purchases as part of its long-term reserve diversification plan.
Rather than backing its USDT tokens one-for-one with those holdings, Tether said the Bitcoin would form part of its surplus reserves — a balance sheet strategy intended to “bolster long-term stability.”
That policy has continued into 2025, reflecting a growing belief that digital assets can strengthen the company’s balance sheet while maintaining redemption commitments.
| Asset Class | Reserve Role | Purpose |
|---|---|---|
| Cash & Treasurys | Core backing for USDT circulation | Liquidity and redemption stability |
| Bitcoin | Surplus reserve allocation | Inflation hedge and long-term store of value |
| Gold (XAUt) | Tokenized bullion reserve | Diversification and tangible asset anchor |
Tether’s gold-linked token, Tether Gold (XAUt), is fully backed by allocated physical bars, and the company has reportedly held talks to invest further in the gold supply chain, according to CoinDesk.
“Gold and Bitcoin work in tandem as complementary hedges,” Ardoino said in earlier remarks. “We see them as strategic, not speculative, additions to Tether’s capital reserves.”
A Dual-Hedge Philosophy
This is not the first time Ardoino has grouped Bitcoin and gold together.
In September, he described Bitcoin, gold, and land as “hedges against systemic risk,” while rejecting speculation that Tether had sold Bitcoin to buy more gold.
“We remain focused on growing our Bitcoin position while diversifying across real assets,” Ardoino said at the time.
Tether’s holdings strategy mirrors a broader “digital gold” thesis — the idea that decentralized assets like Bitcoin serve a similar monetary function to physical gold, especially in times of currency devaluation or fiscal uncertainty.
| Asset | Traditional Role | Tether’s Framing |
|---|---|---|
| Gold | Tangible store of value, hedge against inflation | Physical anchor for reserve stability |
| Bitcoin | Decentralized digital store of value | Strategic balance sheet asset, anti-fiat hedge |
| USDT | Stable digital currency | Liquidity instrument for markets and payments |
“Ardoino’s comment captures the hybrid future of finance,” said Monica Reeves, fintech strategist at Digital Asset Policy Forum. “Bitcoin represents programmable scarcity; gold represents enduring tangibility. Together, they form the ultimate dual hedge.”
The Broader Stablecoin Evolution
Ardoino’s statement arrives as stablecoins evolve from crypto-native instruments into mainstream financial infrastructure.
As PYMNTS reported earlier this month, fintechs from PayPal to Visa are actively experimenting with stablecoin issuance and settlement systems, reflecting a new era of programmable money.
“With a market cap north of $300 billion, stablecoins are emerging as programmable settlement tools that any business — from a retailer to a bank — can deploy,” the PYMNTS analysis noted.
The Shift Toward Corporate Stablecoins
The space has also seen the rise of “corporate stablecoins”, where companies mint their own tokens for loyalty rewards, cross-border B2B payments, or treasury settlement.
In September, Stripe and Bridge launched Open Issuance, a platform that allows businesses to mint and manage private stablecoins with embedded compliance and liquidity controls.
| Trend | Description | Market Impact |
|---|---|---|
| FinTech Stablecoins | Issued by platforms like PayPal or Stripe | Brings tokenization to everyday commerce |
| Corporate Stablecoins | Company-issued internal tokens | Streamlines loyalty and payment rails |
| Programmable Treasury Tools | Stablecoin settlement for finance teams | Merges liquidity, payments, and accounting |
“The barriers to creating programmable money have never been lower,” said Alison Grier, blockchain infrastructure analyst at FinTech Nexus. “But the decision to issue a stablecoin isn’t a tech choice — it’s a governance challenge.”
A Hybrid Future: Digital and Tangible Value
Tether’s dual focus on Bitcoin and gold reflects a larger macro-financial realignment. As fiat systems face inflation, debt, and geopolitical shocks, institutional players are layering assets that offer both liquidity and longevity.
“Ardoino’s view echoes a growing sentiment among digital asset leaders,” Reeves said. “The future of value storage won’t be purely digital or purely physical — it’ll be a blend of both.”
For the stablecoin industry, this blend underscores a new stage of maturity: one where issuers are no longer just replicating dollars on-chain, but also redefining reserve management for a post-fiat world.
FAQs
What did Tether’s CEO say about Bitcoin and gold?
Paolo Ardoino said that Bitcoin and gold will outlast any other currency, emphasizing their long-term resilience.
How does this reflect Tether’s reserve strategy?
Tether invests up to 15% of net profits in Bitcoin and maintains gold-backed reserves via its XAUt token, diversifying beyond cash and Treasurys.
Does Tether use Bitcoin to back USDT directly?
No. Bitcoin is part of surplus reserves, not the 1:1 collateral for USDT redemptions.
Why are companies like Stripe entering the stablecoin market?
To leverage programmable money for faster payments, loyalty rewards, and treasury integration.
What does this mean for finance leaders?
Stablecoins, Bitcoin, and gold now form a converging ecosystem of value, merging liquidity, resilience, and programmable use cases.