Jin Shi Shu Ju·2025-11-12 03:56Core Insights - Tether is hiring two top global precious metals traders from HSBC to build a substantial gold reserve and challenge existing market leaders [1][2] - Tether has accumulated one of the largest gold reserves globally, valued at over $12 billion as of September, and is a significant player in the gold market [2] - The rise in gold prices this year has benefited Tether, driven by central bank purchases and concerns over sovereign debt [3] Group 1: Company Developments - Tether plans to expand its gold reserves significantly, leveraging its financial strength and aiming to become a major competitor in the gold market [1] - The company has reported an average weekly increase of over 1 ton of gold over the past year, making it one of the largest gold buyers [2] - Tether's flagship stablecoin, USDT, is backed by a reserve that includes gold and U.S. Treasury securities, with a market capitalization of approximately $20 billion for its gold-backed stablecoin, XAUT [2] Group 2: Market Context - The departure of key traders from HSBC represents a setback for the bank's precious metals business amid increasing competition for talent in the sector [2] - Gold prices have seen their best annual performance since 1979, prompting various financial entities to expand their precious metals teams [2] - Tether's profitability has surged, with $13 billion in earnings last year and an expected $15 billion this year, comparable to top Wall Street investment banks [2]