Tether Cuts Gold Traders Months After Hiring Them From HSBC

Core Insights - Tether Holdings SA has terminated two senior precious metals traders, Vincent Domien and Mathew O'Neill, just months after their recruitment from HSBC, aimed at establishing a leading gold trading operation [1][2][3] Company Developments - The reasons for the departure of Domien and O'Neill remain unclear, despite their arrival coinciding with Tether's record year of gold purchases, surpassing most central banks [2] - Tether's gold buying strategy was designed to professionalize its bullion acquisition and generate income through active management of its gold reserves, positioning the company as a significant holder of bullion outside traditional banking institutions [3] - Tether has stated its commitment to maintaining a lean operational team while optimizing its operations, indicating a focus on building a specialized gold team leveraging expertise from recent investments [4] Industry Context - Tether, the issuer of USDT, the largest dollar-pegged stablecoin with approximately $184 billion in circulation, held around 140 tons of gold at the beginning of the year to support USDT and its gold-backed coin, XAUT [5] - The significance of Tether's gold purchases became apparent in March, as gold faced its worst monthly performance since 2008, influenced by various market pressures including geopolitical tensions and interest rate expectations [6] - Tether has engaged a major accounting firm for its first full financial audit, with plans to raise up to $20 billion in external funding currently on hold pending audit results [7]