Tether hires top HSBC metals traders as it deepens push into global gold markets

Tether is bringing in two high-level metals traders from HSBC as it grows its role in the global gold market, according to Bloomberg. The company is hiring Vincent Domien, HSBC’s global head of metals trading, and Mathew O’Neill, who oversees precious metals origination across Europe, the Middle East and Africa.

Both are currently finishing their notice periods at the bank and will move over in the coming months. The decision fits into Tether’s broader move to hold more physical gold and gain deeper influence in how bullion is moved, stored and traded.

Vincent sits on the board of the London Bullion Market Association, which is the main organization that sets standards for the global gold market. He joined HSBC after working at Société Générale, then took charge of metals trading in 2022.

Mathew has been at HSBC since 2008, managing relationships with refineries, miners, dealers and institutions across regions that play major roles in physical gold flows.

These roles are central to how the gold market functions day to day, not just how it is priced on screens.

Tether builds one of the largest private gold reserves

Over the past few years, Tether has been gathering physical gold at a pace that stands out even among major financial institutions.

It currently holds more than $180 billion in reserves, and part of that includes what is now one of the largest privately held gold reserves in the world outside of central banks and governments.

As of September, the company held over $12 billion in gold and had been adding more than a ton per week during the year through September. That does not include the gold connected to its own gold-linked token.

The company also issues Tether Gold, or XAUT, which is backed directly by gold bars. Around $2 billion worth of those tokens are in circulation, supported by about 1,300 bars stored in secure vaults.

Each bar has a serial number, and its weight is documented. This means the company is active not only in owning bullion but also in providing a way for holders to access it on-chain without dealing with physical storage.

HSBC faces a gap as gold demand strengthens

HSBC is one of the biggest names in precious metals trading, handling futures, vaulting and physical movement of bullion around the globe. Losing Vincent and Mathew is a setback for the bank at a moment when demand for skilled gold traders is rising.

Banks, hedge funds and commodity houses have all been expanding metals teams this year because gold has been on track for one of its strongest yearly performances since 1979.

Prices have reached repeated highs, driven by demand from central banks, fast-moving trading flows and what some refer to as the “debasement trade,” where investors move out of government bonds and currencies over concerns about long-term value erosion.

Tether’s reserves generated $13 billion in profit last year and are on pace for around $15 billion this year. Higher yields and the rising value of gold contributed to those results.

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