Tether Hires Away HSBC's Top Gold Traders
Authored by GoldFix
Tether Holdings SA has recruited two of HSBC’s most senior gold traders as it ramps up efforts to expand its bullion holdings and directly compete with the world’s dominant precious metals institutions.
According to Bloomberg reporters Jack Ryan, Jack Farchy, and Yihui Xie, HSBC’s global head of metals trading Vincent Domien and head of precious metals origination for EMEA Mathew O’Neill are both set to join Tether in the coming months. Both men are currently serving notice periods, with Domien also holding a board seat at the London Bullion Market Association (LBMA), the industry’s de facto standard-setting body.
“Tether has amassed one of the world’s biggest hoards of gold outside of banks and nation states,” Bloomberg reported, citing the company’s September reserves data showing over $12 billion in bullion holdings.
HSBC is considered the largest global precious metals player after JPMorgan Chase, with deep infrastructure in trading, vaulting, and physical logistics. The loss of Domien and O’Neill marks a significant shift for the London gold market, where veteran traders have long maintained close ties between the LBMA and major Western banks.
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Tether, best known for issuing the USDT stablecoin, has leveraged its massive reserves to build positions in physical gold and related assets. Its reserve portfolio totals roughly $180 billion, including U.S. Treasuries and other high-quality collateral. The company has also issued a gold-backed stablecoin, Tether Gold (XAUT), reportedly supported by 1,300 physical gold bars worth around $2 billion.
“Tether’s reserve assets helped it earn $13 billion last year and an expected $15 billion this year,” Bloomberg noted, placing its profits on par with Wall Street’s largest banks despite a comparatively lean workforce.
Tether’s gold accumulation—adding roughly one metric ton per week through September—has made it one of the most influential new entrants in the bullion market at a time when demand from central banks and private buyers is surging. And taking the talent form HSBC positions them to compete firmly in the tokenized gold markets hurting HSBCs plans as well.
HSBC Plays to Asian Crypto Gold Market
As of April 2024, HSBC launched a tokenized gold product in Hong Kong, offering retail investors 24/7 digital access to physical gold stored in its London vaults. The new product, called the HSBC Gold Token (XGT), represents fractional ownership in gold, with each token equivalent to 0.001 troy ounce.
The offering is hosted on HSBC’s private distributed ledger and is accessible through HSBC Online Banking and the HSBC HK app. Trades can be executed around the clock, though settlement occurs only during business hours in Hong Kong and London. The initiative is part of a broader move by HSBC to bridge traditional finance and blockchain infrastructure. Read full story
The move underscores the convergence between crypto finance and traditional commodity markets, with digital asset firms increasingly viewing gold as both a hedge against monetary debasement and a reserve asset capable of anchoring their token ecosystems.
“Gold’s rally has been fueled by central bank buying, momentum flows, and the so-called ‘debasement trade,’” Bloomberg added, referring to investors’ retreat from sovereign debt toward hard assets.
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