Tether Cuts Gold Traders Amid Market Volatility
Tether has reportedly dismissed two senior precious metals traders just three months after hiring them from HSBC, according to a source familiar with the matter cited by Reuters.
Gold Price Drop Pressures Strategy
The decision comes as spot gold prices face their steepest monthly decline since the 2008 financial crisis. The downturn has been driven by reduced expectations of interest rate cuts and rising energy costs linked to geopolitical tensions in Iran.
Tether’s Gold Holdings and Investment Plans
As of the end of 2025, Tether held approximately 130 metric tons of physical gold backing its products. CEO Paolo Ardoino previously stated that the company intended to allocate between 10% and 15% of its own investment portfolio into physical gold.
Layoffs Confirmed by Sources
The two traders were reportedly let go earlier this month. One of them updated their LinkedIn profile, describing the departure as a “layoff/position eliminated.” The development was initially reported by Bloomberg.
Tether Focuses on Lean Operations
While Tether declined to comment directly on the personnel changes, the company emphasized its commitment to maintaining a streamlined structure. It noted ongoing efforts to optimize operations and build a highly specialized gold team leveraging expertise from its broader investment ecosystem, including gold royalty businesses and related platforms.
$20 Billion Portfolio and Asset Allocation
In January, Tether estimated its investment portfolio at approximately $20 billion. The portfolio includes holdings in U.S. Treasuries, Bitcoin, and technology sector investments.
Gold Prices Reverse After Record Highs
After surging 64% in 2025 and reaching a record high of $5,595 per ounce in January, gold has entered a correction phase. Prices have declined by 18% from their peak and are down 13% in March alone, falling to around $4,579 amid heightened volatility.
