Tether, the issuer of USDT, is no longer content to play on digital markets. It is hoarding, both secretly and physically nearly 80 tons of gold-worth $8bn-are now stored in a top-secret Swiss bunker owned by the company itself. We discuss this in the Cryptic Analysis, after this week’s main news headlines.
Block 1: Main news
Truth Social wants to launch a “Crypto Blue Chip” ETF combining Bitcoin, Ethereum and Solana
After already applying for two crypto ETFs, Truth Social, the platform linked to Donald Trump, has filed a new application with the SEC for a “Crypto Blue Chip” ETF. It would be composed of 70% Bitcoin (BTC), 15% Ether (ETH), 8% Solana (SOL), 5% Cronos (CRO) and 2% XRP (XRP). The fund is backed by Yorkville America Digital, with Crypto.com as a strategic partner, and is seeking listing on the NYSE Arca. This initiative comes at a time when the regulatory environment is more favorable under the Trump administration, with many managers (Grayscale, Bitwise, Franklin Templeton, etc.) also filing applications for expanded crypto ETFs.
GameSquare jumps 120% on the stockmarket after announcing cash holdings in ether
Video game company GameSquare saw its stock soar 120% on the Nasdaq after announcing the creation of an ether (ETH) cash reserve. The company plans to allocate up to $100m to ether over time, while maintaining its working capital. This move is part of a broader trend, with many listed companies investing in crypto. While some warn of the risks of a passing fad, the regulatory environment and the strength of BTC above $100,000 are fueling enthusiasm.
France: Sequans raises $384m to build a bitcoin treasury
French IoT chip manufacturer Sequans has just completed a $384 million fundraising round to build up a bitcoin reserve. Listed in New York and Paris, the company has combined shares, convertible bonds and warrants to finance this strategy. The purchase of BTC will be handled by Swan Bitcoin. This is a first for a French manufacturer, which is following in the footsteps of Strategy and Tesla. CEO Georges Karam cites a desire for financial resilience in an uncertain global context.
Bitcoin: BlackRock’s IBIT ETF outperforms its S&P 500 fund in terms of profitability
Since its launch in early 2024, BlackRock’s Spot Bitcoin ETF (IBIT) has been a resounding success. With nearly $70 billion in assets, it has become more profitable for BlackRock than its own S&P 500 fund (IVV), which is nine times larger. IBIT generates $187.2 million in annual fees thanks to massive demand from investors seeking exposure to Bitcoin through regulated products. It now ranks among the top 20 most traded ETFs in the United States, ahead of historic giants in passive management.
IBIT Bitcoin ETF flows
Bloomberg
Block 2: Cryptic Analysis of the week
Somewhere in Switzerland. The news went almost unnoticed amid the flood of crypto announcements. And yet it marks a turning point in the strategy of the giant Tether: the issuer of the USDT now holds nearly 80 tons of physical gold — the equivalent of $8 billion — in its own vault in Switzerland. Yes, a private vault, outside the traditional banking system, kept secret, invisible on maps… but very real.
An extraordinary diversification strategy
Tether Holdings SA, a company registered in El Salvador, manages the world’s largest stablecoin: the USDT, with $159 billion in circulation and 60% of the stablecoin market. Its business model? Receive dollars in exchange for USDT, then invest this collateral in profitable and liquid assets such as US Treasury bills. But recently, precious metals have come to account for 5% of its reserves, according to a report published in March.
A minority share, certainly, but one that already makes Tether one of the world’s largest holders of gold outside of governments and central banks — on par with giants such as UBS.
Why create your own vault?
Paolo Ardoino, CEO of Tether, explains in an interview: “We have our own vault. I think it’s the most secure in the world.” No date, no address, no partners: everything is kept confidential. This strategic discretion is motivated by two reasons:
- To reduce storage costs. Renting a safe from a gold operator is expensive. If Tether’s gold-backed token (XAUT) reached $100 billion, “50 basis points in fees would be a huge amount,” explains Ardoino.
- Gaining logistical independence. Storing your own gold means ensuring total control—a logical choice in an era where financial sovereignty is becoming a mantra.
XAUT: the golden twin of USDT
In addition to USDT, Tether offers a stablecoin backed by physical gold, Tether Gold (XAUT). Each token represents one ounce of gold stored in Switzerland and is theoretically exchangeable for physical metal. To date, Tether has issued $819 million worth of XAUT, or approximately 7.7 tons of gold.
This is a modest amount compared to gold-backed ETFs, which are much more liquid, but it reveals an ambition: to tokenize gold to make it programmable, exchangeable, and divisible. This vision is aligned with the broader movement towards the tokenization of real assets.
The problem is that regulators do not look kindly on gold in stablecoin reserves. In both the European Union and the United States, current legislation requires reserve assets to be liquid and quasi-monetary (cash, short-term sovereign bonds). In other words, there is no place for gold bars.
If Tether wanted to obtain a regulated license for USDT in these jurisdictions, it would have to sell its gold reserves. And the company knows this. Its strategy therefore seems to be a hybrid one, combining tactical independence with expansion outside the traditional institutional framework.
A disguised geopolitical signal?
Gold is not just a safe-haven asset. It is also a symbol of mistrust towards the dollar and sovereign debt. Ardoino puts it bluntly: “If people start to worry about US debt, they may consider alternatives.” ” He points to the growing demand for gold from BRICS central banks, which are actively contributing to the rise in the metal’s price (+25% since the beginning of the year).
Tether’s move fits into this backdrop of de-dollarization, geopolitical tensions, trade wars, and the quest for monetary sovereignty.
Tether remains a controversial company. It has often been accused of being vague about its reserves and its explosive growth has attracted the attention of regulators around the world. Allowing billions of dollars to change hands outside the banking system is a technological feat, but also a challenge for global financial stability.
But Tether is not betting everything on blockchain. Since 2023, the company has been investing heavily in Bitcoin mining: first in El Salvador via Volcano Energy, then in Uruguay with the creation of Tether Power. At the same time, it is developing MOS, an open-source operating system dedicated to mining.
But its ambition goes further…
By acquiring 39% of Northern Data Group (listed in Frankfurt), Tether has entered a new playing field—artificial intelligence. And it does not intend to remain a spectator. In May 2025, CEO Paolo Ardoino outlined an open-source AI ecosystem where wallets, USDT payments, and AI agents are interconnected. The whole thing is based on Pears, a suite of P2P tools co-financed by Tether (remote computers, decentralized messaging, etc.).
Behind the lines of code, more concrete—and sometimes unexpected—investments show how far Tether is extending its reach into various sectors:
- Juventus Football Club: Tether owns 8.2% of the Turin-based club, becoming its second-largest shareholder after Exor (the Agnelli family).
- Blackrock Neurotech: in April 2024, Tether injected $200 million to become the majority shareholder in this pioneering brain implant company.
- Rumble: YouTube’s rival video platform received $775 million in Tether in December 2024.
- Adecoagro: Tether increased its stake to 70% in this NYSE-listed agricultural holding company specializing in milk, sugar, ethanol, and energy.
Behind the stablecoin, a sprawling holding company is emerging. Tether is no longer content with issuing digital currency: it invests, builds, explores… and is now too big to fail?
Cryptocurrency rankings(Click to enlarge)
MarketScreener
Block 3: Readings of the week
Genius Act: this new US law on cryptocurrencies could pave the way for the next global financial crisis (The Conversation)
The next frontier in finance: tokenized access to private markets (CoinDesk)
