After a massive gold purchase, "stablecoin giant" Tether suddenly dismisses two gold traders, just months after hiring them from HSBC

Ask AI · Is the audit initiation and funding pause related to changes in the gold team?

“Stablecoin” giant Tether disbands the gold trading team recruited from HSBC.

On March 31, according to Bloomberg citing sources, “Stablecoin” giant Tether has dismissed senior metals traders Vincent Domien and Mathew O’Neill, both of whom transferred from HSBC Holdings several months ago.

The reasons for their departure are unclear. When they joined Tether, the company was experiencing a record-breaking year for gold purchases, nearly surpassing all central banks. Tether responded to Bloomberg’s inquiry by stating:

The company is always committed to maintaining a lean team and continuously optimizing operations.

At the time of this personnel change, Tether was facing downward pressure on gold prices. In March, influenced by Middle Eastern tensions, crude oil prices surged, while the gold market experienced its worst monthly performance since 2008. Against this backdrop, oil priced in gold saw a significant increase this month, breaking a multi-year downtrend.

(Oil priced in gold surged in March)

Recruiting from HSBC to Dominate the Gold Market

The addition of Domien and O’Neill initially drew widespread attention in the gold market.

Both previously held key positions at HSBC, with Domien responsible for global metals trading and O’Neill being a top salesperson.

Tether brought these two on board with the goal of professionalizing gold reserve management and generating profits through active management of gold assets. Their public statements even aimed to build the “world’s best gold trading desk.”

At the time of their joining, Tether had just completed a record year of gold purchases, exceeding nearly all central banks.

However, as gold prices faced multiple pressures in March—triggered by Iran war-related sell-offs, rising interest rate expectations, and at least one central bank selling—gold and Bitcoin declined in tandem, putting pressure on its investment portfolio.

Analysts believe Tether appears to be shrinking its team after completing its position building, with the company employing about 300 staff.

This layoffs event also reflects another side of the commodities industry’s talent rush. Over the past year, many traders have been aggressively recruited from traditional banks dominating the gold market.

Reports indicate that Mercuria Energy Group hired Benjamin Binet-Laisne from Goldman Sachs, and Gunvor Group also recruited a batch of traders from multiple institutions.

Full-scale audit begins, funding plan put on hold

The personnel change in the gold team coincides with a significant transitional phase for Tether itself.

This month, Tether announced that it has commissioned a major accounting firm to conduct its first comprehensive financial audit. Meanwhile, its plan to raise up to $20 billion in external funding has been put on hold, pending the audit results.

Tether is the issuer of the world’s largest dollar-pegged “stablecoin” USDT, with a current circulation of about $184 billion.

Earlier this year, the company held approximately 140 tons of gold, mainly used to back USDT and its smaller gold-pegged stablecoin XAUT.