Tether winds down its smallest gold product, Alloy, while maintaining a 19 billion dollar gold reserve surpassing many national holdings.
Tether is closing its gold-backed lending platform, Alloy, after users failed to adopt the product widely. The shutdown affects only a few hundred thousand dollars of assets, a fraction of Tether’s 19 billion dollar gold stash, which now totals 146 metric tons following a 14-tonne addition last quarter.
The company’s gold holdings place it among the world’s largest private bullion holders, ahead of many national reserves. Tether has reaffirmed its commitment to gold as a strategic asset, redirecting resources to its core products like XAUT. The move reflects routine portfolio management rather than a shift in gold strategy.
Gold prices recently hit a two-month high as markets await U.S. inflation data, but Tether’s decision is unlikely to impact broader gold demand or pricing.