Tether, the company behind the USDT stablecoin, has emerged as one of the largest purchasers of gold globally, acquiring more of the precious metal than any other entity in the past year. The El Salvador-based firm, which operates USDT as a stablecoin backed by hard currency, functions as a bridge between volatile cryptocurrencies and traditional financial systems, often serving as an offshore dollar equivalent. According to data from the European Central Bank, Tether's gold acquisitions surpassed all other buyers.
Tether's holdings are reportedly stored in a fortified Swiss facility, described by the company's CEO as a "James Bond-style Swiss former nuclear bunker." Beyond gold, Tether also holds approximately $135 billion in U.S. government debt, a sum comparable to that held by some G20 nations and exceeding South Korea's holdings. Despite its significant financial influence, operating with characteristics akin to a private central bank, Tether employs a staff of only 200 people.
The company's major shareholder, Christopher Harborne, has been a significant financial backer of Nigel Farage's Reform party. In the last year, Harborne donated £9 million in cash to the party, followed by additional contributions of £3 million in October and another £3 million in January, all of which were declared. Prior to these donations, Harborne had also made a previously undisclosed personal gift of £5 million to Farage himself, which was subject to parliamentary investigation before Farage resigned as a Member of Parliament.
Both Farage and Harborne have stated that neither the personal gift nor the political donations to Reform carried any conditions. In September of the previous year, the Governor of the Bank of England, Andrew Bailey, confirmed that Farage had discussed cryptocurrency regulation and central bank digital currencies with him. Bailey characterized Farage's views as clear, noting that the intervention did not alter the Bank's policy and that he could identify and discount lobbying efforts. Farage's specific concern reportedly centered on potential Bank of England plans to limit holdings of sterling stablecoins to between £10,000 and £20,000, a proposal the industry was actively lobbying against.
While Farage did not specifically mention Tether in his conversation with Bailey, he did address stablecoin regulation generally. A spokesperson for Farage stated that his remarks to Bailey were consistent with his long-held belief that the UK should become a global center for regulated cryptocurrency innovation and investment. Farage had previously voiced his support for the cryptocurrency industry, stating in September, the day before his meeting with Bailey, that Tether was on track to be valued as a $500 billion company. He had also advocated for London to embrace cryptocurrencies and become a global trading hub under proper regulation.
In May of the previous year, Reform published a draft Cryptoassets and Digital Finance Bill, which briefly referenced stablecoins but did not address the Bank of England's proposed limits on personal holdings. This draft legislation has since been removed from the Reform party's website and is no longer generally available online.