TL;DR
- Tether hires Vincent Domien and Mathew O’Neill, two of HSBC’s most senior precious metals traders, to strengthen its gold reserve strategy.
- The company holds over $12 billion in bullion and has added gold at an average rate of one ton per week.
- Its goal is to reinforce the underlying backing of USDT and XAUT.
Tether Holdings SA has hired two of HSBC’s most senior precious metals traders to bolster its gold reserve strategy and position itself to compete with major players in the bullion market.
Vincent Domien, global head of metals trading, and Mathew O’Neill, head of metals origination for Europe, the Middle East, and Africa, are set to join the company in the coming months, according to sources with direct knowledge of the matter.
The hiring is part of Tether’s expansion in the precious metals market, which already places the company among the largest gold holders outside of banks and nation-states. According to its latest reserve report, Tether holds over $12 billion in bullion and has added gold at an average pace of one ton per week over the past year, consolidating its role as one of the market’s strongest buyers. In addition to accumulating bullion, the company has invested in other parts of the supply chain, including precious metals royalty companies.
Why Is Tether Accumulating So Much Gold?
The company’s goal is to strengthen the reserves backing its USDT stablecoin and Tether Gold (XAUT). USDT remains convertible 1:1 with the U.S. dollar, backed primarily by U.S. government debt and other assets, while XAUT has roughly $2 billion in circulation, fully backed by approximately 1,300 gold bars. This strategy allows Tether to offer direct exposure to the metal and maintain credibility and solidity in its issuances.
This hiring comes amid gold’s strong performance, marking its best annual run since 1979, driven by central bank purchases, momentum investing, and demand for a hedge against sovereign debt and currency devaluation. The departure of Domien and O’Neill represents a blow to HSBC, which faces increased competition to retain talent in a market where the demand for precious metals specialists has intensified.
Tether generated $13 billion in profits last year from its reserves and expects to reach $15 billion in 2025. The addition of these executives will optimize asset management, expand Tether’s gold accumulation strategy, and strengthen its position as a leading player in the precious metals market
