Tether CEO reiterates the dual pillar strategy: the long-term value of Bitcoin and gold will surpass all fiat.

Tether CEO Paolo Ardoino posted on the X platform last Sunday asserting: "Bitcoin and Gold will outlast any other currency." This succinct statement aligns with the reserve diversification strategy that its stablecoin issuer Tether has been implementing over the past two years. Since May 2023, Tether has announced that up to 15% of its net operating profit will be used to purchase Bitcoin, while simultaneously positioning gold as another strategic pillar in its reserves through the issuance of XAUt and seeking upstream investments.

Tether's Dual Pillar Strategy: Bitcoin and Gold Go Hand in Hand

Bitcoin as a Strategic Reserve Asset: On May 17, 2023, Tether stated that it would periodically allocate up to 15% of its net realized operating profits for the purchase of Bitcoin, adding it to the company's reserves as surplus. This move aims to strengthen the company's balance sheet through long-term value storage assets, not to use Bitcoin as collateral to back the circulating USDT 1:1.

Gold as a Parallel Pillar: In addition to Bitcoin, gold also plays an important role in Tether's reserve portfolio.

XAUt and its reserves: Tether issued tether gold (XAUt), which is a token backed by physical allocated gold bars. As of June 30, 2025, over 7.66 tons of gold supports the circulating tokens.

Upstream Investment: According to the Financial Times, Tether has been negotiating investments in the gold value chain, covering areas from mining and refining to royalties, as part of its broader asset diversification strategy.

CEO's multiple statements: Aldoino has previously placed these two assets side by side in public. On September 7, he mentioned that Bitcoin, gold, and land are all tools for hedging risks. He also explicitly denied the speculation that Tether was selling Bitcoin to accumulate gold, reiterating the company's commitment to continue increasing its Bitcoin holdings.

DXY Weakens and BTC, Gold Show Strong Returns

Reaffirmation of Strategy Rather than Policy Shift: Aldoino's latest eight-character aphorism is more of a strategic reaffirmation than a policy shift. According to Tether's report, most of its reserves are still primarily in liquidity instruments such as U.S. Treasury bonds, while Bitcoin has become a strategic asset through profit accumulation, and gold has become a parallel pillar through tokenization and potential upstream investments.

Asset Performance Comparison: Market data supports Tether's diversified allocation strategy. As of Sunday at 8:10 PM UTC, the US Dollar Index (DXY) has decreased by 8.88% year-to-date. In contrast, Bitcoin (BTC-USD) and gold (XAU-USD) have performed strongly, rising 22.79% and 52.91%, respectively.

Reserve Report Approaching: The market is waiting for Tether's latest reserve report, which is expected to be released at the end of this month or early next month, at which time it will reveal whether there have been any changes in the latest allocation ratios of Bitcoin and gold.

Conclusion

Tether CEO Paolo Ardoino's confident statements about the long-term value of Bitcoin and gold strongly reflect the company's strategy of using these two assets as a key defense against the risks of the traditional fiat currency system. As the US Dollar Index (DXY) continues to weaken in 2025, while Bitcoin and gold assets show strong double-digit growth, Tether demonstrates its firm commitment to long-term value storage and diversified allocation in stablecoin reserve management by investing net profits in Bitcoin and actively positioning itself in the gold value chain.

Disclaimer: This article is for informational purposes only and does not constitute any investment advice. The cryptocurrency market is highly volatile, and investors should exercise caution in their decision-making.

BTC3.54%
XAUT1.62%
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