Tether Mirrors Central Bank Strategy With Rapid Gold Buying and Key Hires From HSBC’s Precious Metals Team

Tether Deepens Gold Bet With Veteran HSBC Traders As Global Demand Surges

The world’s largest stablecoin issuer, Tether, is expanding its reach into the gold market, moving beyond digital currencies into one of the oldest forms of value storage.

The company has reportedly hired two senior metals traders from HSBC — Vincent Domien, the bank’s global head of metals trading, and Mathew O’Neill, head of precious metals sourcing for Europe, the Middle East and Africa — to oversee and scale its bullion operations.

Both are expected to join in the coming months after completing their notice periods at HSBC.

Building A Private Gold Empire

Tether has quietly become one of the largest private holders of physical gold, mirroring the behaviour of sovereign entities rather than fintech firms.

Its reserves now exceed $180 billion, including about $12 billion in physical gold as of September 2025.

Over the past year, the company has reportedly been buying more than one tonne of gold every week — a pace rarely seen outside of central banks.

This accumulation forms part of the reserves backing Tether’s US dollar-pegged stablecoin, USDT, and its gold-backed token, Tether Gold (XAUT).

The latter has a market capitalisation of roughly $2 billion, supported by around 1,300 gold bars stored in secure vaults.

Each bar is individually numbered and documented, giving token holders traceable access to physical assets through blockchain-based ownership.

Private Stablecoins Reflect Central Bank Behaviour

The timing of Tether’s gold expansion coincides with record central bank purchases of bullion.

Global central banks collectively acquired over 1,000 tonnes of gold in 2024 — the second-highest total on record — led by emerging economies seeking protection from dollar-linked volatility.

Tether’s move appears to align with this trend, reflecting a broader shift towards hard assets amid changing global monetary dynamics.

Unlike Circle’s USDC, which mainly invests in short-term US Treasuries, Tether’s growing reliance on bullion signals a pivot away from fiat-based reserves.

The company’s approach suggests it views gold not only as a hedge against market uncertainty but also as insulation from regulatory and geopolitical risks.

From Payment Processor To Private Reserve Manager

The company’s evolving reserve strategy has made it resemble a sovereign wealth fund more than a payment processor.

Tether’s preference for tangible assets over yield-generating instruments marks a key philosophical divide in the stablecoin sector — one focused on long-term security rather than short-term returns.

Its 2024 profits of $13 billion, driven by interest income and the rising value of gold, are on track to reach $15 billion this year.

Such figures place Tether among the most profitable financial entities globally, blurring the line between private fintech and institutional asset manager.

HSBC Loses Two Key Figures In Metals Trading

For HSBC, the departure of Domien and O’Neill marks a loss of two highly experienced figures in a period of renewed strength for the gold market.

Domien, who joined HSBC from Société Générale and became head of metals trading in 2022, also serves on the board of the London Bullion Market Association — the body that sets global standards for gold trading.

O’Neill, a veteran of the bank since 2008, has managed relationships across major mining, refining and trading hubs in Europe, the Middle East and Africa.

Their move to Tether comes as demand for skilled gold traders intensifies.

Banks and commodity firms have been expanding their metals desks amid one of gold’s strongest runs since 1979, fuelled by central bank buying, investor demand and what traders call the “debasement trade” — a shift away from traditional bonds and currencies due to fears of long-term value erosion.

Transparency Remains The Central Question

Despite its growing influence, Tether continues to face scrutiny over transparency.

Critics argue that without frequent independent audits or full disclosure of its reserves, concerns over asset backing could persist — even as the company diversifies into physical holdings.

Managing physical bullion at this scale also introduces logistical and cybersecurity challenges.

With two of HSBC’s most experienced traders now onboard, Tether appears focused on strengthening its operational backbone — potentially transforming its role from a digital token issuer into a significant player in global reserve management.