UBS – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Tue, 08 Jul 2025 19:10:36 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.7 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 UBS – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Tether holds $8 billion worth of gold in Swiss vault, matching UBS exposure https://earlybirdsinvest.com/tether-holds-8-billion-worth-of-gold-in-swiss-vault-matching-ubs-exposure/ https://earlybirdsinvest.com/tether-holds-8-billion-worth-of-gold-in-swiss-vault-matching-ubs-exposure/#respond Tue, 08 Jul 2025 19:10:36 +0000 https://earlybirdsinvest.com/tether-holds-8-billion-worth-of-gold-in-swiss-vault-matching-ubs-exposure/

Tether CEO Paolo Ardoino revealed that the firm holds roughly $8 billion in gold in a Swiss vault during an interview with Bloomberg News on July 7.

Ardoino called the site “the most secure vault in the world” and said the company owns almost the entire 80-ton stockpile outright, placing the El Salvador-based issuer among the largest private gold holders globally.

According to a March attestation, gold now represents nearly 5% of Tether’s $112 billion reserve portfolio. The stash’s dollar value matches the precious metals book at UBS Group AG, one of the few bullion-dealing banks that break out those holdings.

Tether’s USDT reached a market capitalization of $159 billion last month, following nearly $5 billion in monthly growth.

Ardoino argued that Tether can scale a gold program without proportionally higher fees by self-custodying bullion instead of using commercial vault operators, which charge about 50 basis points.

Regulatory headwinds in key markets

Lawmakers on both sides of the Atlantic are moving in the opposite direction. Draft US bills such as the GENIUS Act and Europe’s Markets in Crypto-Assets (MiCA) framework allow only cash or near-cash instruments to collateralize fiat-referenced stablecoins, excluding commodities like gold.

If those rules take effect and Tether seeks licenses in those jurisdictions, it would have to liquidate the bullion that backs USDT, although the company could retain metal tied to its gold-backed token, XAUT.

Notably, MiCA granted licenses to 53 crypto firms in the first six months of regulation but excluded Tether.

XAUT circulates against 7.7 tons of gold, worth approximately $819 million, which is well below the 950-ton giant among exchange-traded gold funds but large enough to make redemptions viable at vault doors in Switzerland.

Ardoino said demand could accelerate if investors lose confidence in US fiscal sustainability and seek alternatives that avoid bank-deposit risk while remaining on-chain.

Market context and outlook for bullion-linked tokens

Spot gold has advanced by roughly 25% in 2025 as traders hedge tariff-driven trade friction and wider geopolitical tension.

Ardoino said:

“Every single central bank in the BRICS countries is buying gold, so that is why the price went up in our opinion.”

Tether must still convince regulators that a metal-heavy reserve would not impede USDT’s liquidity under stress.

For now, the firm holds the metal, earns yield on Treasurys, and keeps a separate token directly convertible into vaulted bars, combining traditional bullion economics with blockchain settlement.

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]]> https://earlybirdsinvest.com/tether-holds-8-billion-worth-of-gold-in-swiss-vault-matching-ubs-exposure/feed/ 0 46506 UBS reveals wealthy investors increasing crypto allocations to 5%, echoing Bitwise https://earlybirdsinvest.com/ubs-reveals-wealthy-investors-increasing-crypto-allocations-to-5-echoing-bitwise/ https://earlybirdsinvest.com/ubs-reveals-wealthy-investors-increasing-crypto-allocations-to-5-echoing-bitwise/#respond Thu, 15 May 2025 18:54:03 +0000 https://earlybirdsinvest.com/ubs-reveals-wealthy-investors-increasing-crypto-allocations-to-5-echoing-bitwise/

Swiss lender UBS, which manages over $1 trillion in assets, said wealthy clients have begun allocating up to 5% of their portfolios to crypto as a way to hedge against inflation and currency volatility.

According to the Swiss bank’s 2025 Global Investment Returns Yearbook, affluent investors are diversifying beyond traditional assets by investing in Bitcoin (BTC) and alternative cryptocurrencies.

Shifting portfolio strategies

The report highlighted how crypto has evolved from a fringe asset into a recognized component of modern portfolio construction, particularly as long-term concerns mount around the US dollar and other fiat currencies.

The 2025 Yearbook noted that traditional diversification models, once reliant on real estate, commodities, and global equities, are being rethought in response to structural inflation and increased systemic risk.

Digital assets are gaining attention for their low correlation to legacy markets and their potential to act as buffers against macroeconomic shocks.

The analysis echoes comments made by Bitwise CIO Matt Hougan, who recently highlighted that institutional and high-net-worth investors increasingly view crypto as a macro hedge. Hougan similarly said that these investors are starting to increase their allocations to crypto from 1% to up to 5%.

Generational split

UBS data shows a clear generational divide in how clients approach crypto. Younger investors, primarily those under 50, are significantly more likely to incorporate digital assets into their core holdings.

Many view cryptocurrencies not just as a hedge, but as a bet on the future of financial infrastructure, driven by advancements in blockchain, tokenization, and decentralized applications.

These investors are also more comfortable with volatility and more receptive to emerging technology sectors. For them, crypto fits naturally alongside venture capital and tech exposure in portfolios designed for long-term growth.

In contrast, older clients tend to approach crypto with greater caution, often limiting exposure to small, controlled allocations through regulated products or tokenized versions of traditional financial instruments.

For these investors, crypto serves a complementary role, similar to gold, insurance against systemic tail risks, rather than a primary growth engine.

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