After aggressively buying gold, "stablecoin giant" Tether suddenly fired two gold traders, just months after poaching them from HSBC.

“Stablecoin” giant Tether lays off gold trading team poached from HSBC. On March 31, Bloomberg quoted sources saying that “stablecoin” giant Tether has dismissed senior precious metals traders Vincent Domien and Mathew O'Neill, both of whom had joined the company from HSBC Holdings only a few months ago. The reasons for their departures remain unclear. When they joined Tether, the company was experiencing a record-breaking year in gold purchases, with volumes exceeding those of almost all central banks. In response to Bloomberg News’ inquiry, Tether stated: The company is always committed to keeping a lean team and continuously optimizing its operations. This personnel change comes as Tether faces pressure from a gold price correction. In March, oil prices surged due to developments in the Middle East, while the gold market saw its worst monthly performance since 2008. Against this backdrop, oil prices denominated in gold soared this month, breaking years of downward trends. (Image: Oil prices denominated in gold surged in March.) Poaching from HSBC, aiming for dominance in the gold market Domien and O'Neill’s joining initially sparked widespread attention in the gold market. Both held key positions at HSBC—Domien was responsible for global metals trading, while O'Neill was a top salesperson. Tether brought in the two with the goal of professionalizing gold reserve management and generating returns through active gold asset management; the company even publicly stated its desire to build the “world’s best gold trading desk.” Tether had just completed a record-breaking year of gold purchases when the two joined, with volumes surpassing those of nearly all central banks. However, as gold prices in March came under multiple pressures from a sell-off triggered by the Iran conflict, rising expectations of rate hikes, and at least one central bank offloading gold, the simultaneous declines in gold and Bitcoin have put its portfolio under strain. Analysts believe Tether appears to be downsizing its team after establishing its positions; the company has about 300 employees. This round of layoffs also reflects another side of the talent war in the commodities sector. Over the past year, many trading firms have spent heavily poaching talent from banks that traditionally dominate the gold market. Reports indicate Mercuria Energy Group recruited Benjamin Binet-Laisne from Goldman Sachs, and Gunvor Group has also brought in several traders from various institutions. First full audit launched, fundraising plans put on hold Personnel changes in the gold team occurred as Tether was undergoing a critical transition. This month, Tether announced it has commissioned a major accounting firm to conduct its first full financial audit. At the same time, the company’s plans to raise up to $20 billion in external funding have been suspended until the audit results are released. Tether is the issuer of the world’s largest dollar-pegged stablecoin, USDT, whose circulation currently stands at about $184 billion. At the beginning of the year, the company held about 140 tons of gold, mainly to support USDT and its smaller gold-pegged stablecoin XAUT reserves. Risk warning and disclaimer The market involves risks, and investments should be made with caution. This article does not constitute personal investment advice and does not take into account individual users’ specific investment goals, financial situation, or needs. Users should consider whether any opinions, views, or conclusions in this article are appropriate for their particular situation. Investments made accordingly are at the user's own risk.