Key Notes
- HSBC veterans bring institutional expertise as Tether controls over $12 billion in gold reserves, positioning as major commodities player.
- Gold prices rebound above $4,100 amid geopolitical uncertainty and US shutdown, driving demand for tangible on-chain safety assets.
- Tether’s market cap exceeds $183 billion with $17 billion Q3 growth and $6.5 billion in excess reserves under new strategy.
Tether, the world’s largest stablecoin issuer, hired senior metals traders from HSBC to oversee the expansion of its gold reserves and precious metals trading operations.
The strategic recruitment reflects Tether’s plan to diversify its balance sheet by increasing exposure to physical assets, particularly gold, amid volatile macroeconomic conditions and sustained investor demand for tangible value stores. Tether now controls one of the largest private gold holdings in the financial sector. With over $12 billion worth of gold reserves as of September 2025, according to Bloomberg.
Tether Expands Gold Division with Veteran HSBC Traders
The new hires bring decades of experience in bullion trading, metals risk management, and reserve allocation, signaling Tether’s ambition to become a major participant in the global precious metals market. The firm plans to leverage this expertise to enhance liquidity, improve storage efficiency, and potentially offer new gold-backed financial instruments.
The move also comes during a historic gold rally, with prices rebounding above $4,100 this week, after retreating from all-time highs above $4,381 in October. Geopolitical uncertainty and economic impact of the US government shutdown have accelerated demand for on-chain traded flight-to-safety assets like gold, metals and Treasury assets.
By tapping institutional-level trading expertise from HSBC, Tether positions itself to optimize reserve management on record-setting revenues generated from its stablecoin issuance, and expand its influence into traditional commodities markets.
According to Kitco.com, which cited anonymous sources, Vincent Domien, HSBC’s Global Head of Metals Trading, and Mathew O’Neill, former Head of Precious Metals Origination for EMEA, are among the executives expected to join Tether’s metals unit in coming months.
Tether market capitalization crossed $183B on Nov. 11 | Source: Coinmarketcap
Tether’s USDT market capitalization sits above $183 billion at press time on Nov. 11, according to Coinmarketcap data. CEO Paolo Ardoino confirmed that the stablecoin supply increased by $17 billion in Q3, while the company sits on $6.5 billion in excess reserves.
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Ibrahim Ajibade is a seasoned research analyst with a background in supporting various Web3 startups and financial organizations. He earned his undergraduate degree in Economics and is currently studying for a Master’s in Blockchain and Distributed Ledger Technologies at the University of Malta.
