The El Salvador-headquartered stablecoin giant, Tether, has eliminated the roles of two high-profile gold traders recently brought on board to manage its physical bullion reserves. According to sources with direct knowledge of the matter, the layoffs occurred as spot gold prices faced immense pressure from fading interest rate cut expectations and the economic fallout of the conflict in Iran.

As of the end of 2025, Tether held approximately 130 metric tons of physical gold to back its digital products. CEO Paolo Ardoino had previously stated plans to allocate up to 15% of the company’s $20 billion investment portfolio to physical gold. However, the market has shifted dramatically since bullion hit a record high of $5,595 per troy ounce in January.

In March alone, gold prices plummeted by 13%, currently trading around $4,579. This volatility appears to have prompted a strategic “optimization” within Tether’s investment division. While the company did not comment on the specific departures, a spokesperson stated that Tether always strives to operate with a “lean team” and is continuously building a “state-of-the-art” gold team leveraging recent investments in gold royalties and digital assets.

One of the affected traders confirmed the “position eliminated” status on their professional profile, marking a quick end to a tenure that began with high expectations during the gold surge of late 2025. Despite these cuts, Tether remains a major player in the precious metals space, maintaining a diverse portfolio that includes U.S. Treasuries, Bitcoin, and various tech sectors.

Industry analysts suggest that the broader crypto-asset market is closely watching how stablecoin issuers manage their physical reserves as geopolitical instability continues to drive massive fluctuations in traditional “safe-haven” assets like gold.