Tether holds 148 tons of gold as stablecoins face 13% risk

At the Digital Money Summit 2026 in London, experts made headlines with warnings about tighter oversight of private stablecoins, particularly from regulatory authorities in the European Union. Analysts say stablecoins issued by private companies are once again under scrutiny, with a strong emphasis on the financial risks they may pose.Clear warnings from digital asset managersMarket volatility and de-peg concernsTether’s gold reserves under the microscopeThe stablecoin model under debate Clear warnings from digital asset managersChristoph Hock, Head of Tokenization and Digital Assets at Union Investment, one of Germany’s largest institutional asset managers, shared a notable assessment of Tether and Circle’s dollar-backed stablecoins. With assets under management of around $620 billion, Union Investment is a major player in European finance.Hock argued that the reserves held by Tether and Circle are structured less like classic currency pegs, and more akin to investment funds. Because of this, he does not view them as genuine “stablecoins.”According to Hock, the inclusion of volatile assets such as gold and Bitcoin in the reserves of Tether and USDC brings their risk profile close to that of hedge funds. He highlighted that this structure poses substantial risks for both corporate treasuries and institutional investors.Mini glossary: A stablecoin is a type of digital currency typically pegged to a real-world fiat unit such as the US dollar or euro to reduce price volatility. However, some private stablecoins maintain reserves in various investments, which can weaken price stability. Market volatility and de-peg concernsAfter sharp market sell-offs in March 2024, USDC’s price fell as low as $0.74 on three separate days. Such price slippage was previously triggered by banking sector issues and high transaction fees on the Ethereum network. In 2023, USDC’s value also dropped 13%, briefly trading at just 87 cents instead of its intended $1 peg.Experts point out that such episodes expose both users and large institutions to significant losses if there is a shortfall in the claimed reserves backing USDC and similar stablecoins.Hock added that inadequate liquidity during sudden periods of market stress can disrupt a stablecoin’s price peg, causing delayed payments and potentially triggering systemic crisis when many investors rush to sell at once.Recalling the de-peg event experienced by Circle, Hock stated that, in such crises, public funds may be needed to prevent destabilization, introducing systemic risk for institutional investors.Tether’s gold reserves under the microscopeAs of January 2026, Tether reportedly holds a total of 148 tons of gold in its reserves, with an estimated value of $23 billion. This has made Tether one of the world’s top 30 gold holders, outstripping the reserves of many national governments.However, Hock cautioned that a sudden loss exceeding 13% in stablecoins considered a safe haven for overnight transactions by companies or funds could pose a severe financial threat. He stressed that institutional investors in particular cannot accept such high volatility on their balance sheets.The stablecoin model under debateThe reserve structures and lack of transparency of stablecoins are central topics as new regulations take shape in Europe. Digital asset managers warn all market participants about the volatility risks of stablecoins, especially when used in company treasuries.Unlike traditional cash instruments seen as risk-free, privately issued stablecoins that include volatile investments in their reserves are now being questioned as reliable “safe havens.” Experts note that stricter reserve and transparency rules for stablecoin issuers are under active consideration.StablecoinMain Reserve AssetsMarket Value (2026)De-peg RiskTether (USDT)US Dollar, Gold, Bitcoin$90 billionHigh (due to reserve diversity)USD Coin (USDC)US Dollar, US Treasury bonds$30 billionModerate (dependent on liquidity)Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.