Tether: The Hidden Giant Behind Reform UK’s Funding

The secretive crypto firm backed by Farage – When considering who purchases the most gold globally, most observers immediately think of major economies like China, Japan, or wealthy Gulf nations. However, according to European Central Bank statistics, the single largest buyer of this precious metal over the past year was actually a cryptocurrency company that most people have never encountered—Tether. Headquartered in El Salvador, this firm operates USDT, recognized as the world’s largest stablecoin, a digital currency type secured by traditional fiat money. Acting as a bridge between highly volatile cryptocurrencies and mainstream financial markets, USDT functions essentially as an offshore dollar equivalent.

A Massive Operation with Minimal Staff

Tether’s financial footprint extends far beyond digital currencies. The company reportedly stores its gold reserves in a former nuclear bunker in Switzerland, described by Tether’s leadership as resembling a scene from a James Bond film. Beyond precious metals, Tether claims to hold approximately $135 billion (£101 billion) in United States government debt—a sum exceeding the national debt holdings of South Korea. Despite managing assets on this scale, the organization employs merely 200 staff members, operating with the characteristics of a private central bank while maintaining a remarkably lean workforce.

Reform UK’s Connection to Tether

Perhaps unintentionally, Tether has become intertwined with questions surrounding the financial backing of Nigel Farage’s Reform party. Christopher Harborne, one of Tether’s major shareholders, has made substantial contributions to Farage’s political movement. In August of last year, Harborne provided £9 million in cash to Reform, marking the largest single party donation in British history. Following this, he contributed an additional £3 million in October and another £3 million in January. All of these donations were properly declared through official channels.

Before Farage stepped down from his position as a Member of Parliament, Harborne had already presented him with a previously undisclosed personal gift of £5 million. Both men have publicly stated that neither the personal gift nor the political donations came with any conditions or expectations attached.

Regulatory Discussions at the Bank of England

Andrew Bailey, the governor of the Bank of England, recently confirmed that Farage raised matters concerning cryptocurrency regulation and central bank digital currencies during a September meeting. Bailey noted that while Farage expressed his views “very clearly,” this intervention did not alter the Bank’s existing policies. He also mentioned his ability to identify and appropriately weigh “lobbying” efforts.

A particular concern for Farage involved speculation that the Bank of England might implement a restriction on sterling stablecoin holdings, potentially setting limits between £10,000 and £20,000. The cryptocurrency industry mounted significant opposition to this proposed cap. While Farage did not specifically mention Tether during his conversation with the governor, he did discuss stablecoin regulation more broadly. This has prompted reasonable questions about whether any potential policy shifts could benefit Tether and its shareholders.

“Tether is about to be valued as a $500bn company,” he told LBC presenter Nick Ferrari in September, the day before meeting Bailey. “This world is enormous, and I’ve been urging for years that London should embrace it. We should become a global trading centre for this stuff under proper regulation.”

Reform’s Legislative Ambitions

Farage has consistently demonstrated openness toward cryptocurrency adoption. His team maintains that his discussions with Andrew Bailey align with his longstanding conviction that the United Kingdom should position itself as an international hub for regulated cryptocurrency innovation and investment. This perspective was reflected in May, when Reform—then leading in opinion polls—published its sole piece of draft legislation: the Cryptoassets and Digital Finance Bill. While this document briefly mentioned stablecoins, it contained no reference to the Bank’s existing proposal to restrict personal holdings.

Although the legislation has since been removed from both the Reform website and general web archives, the party maintains it remains official policy, noting that the website is regularly updated to showcase current announcements. Three months after the stablecoin regulation debate gained prominence, Reform emphasizes that this issue has become central to its discussions with the Bank of England, particularly since the official consultation only commenced in November.

It is worth noting that Bailey’s influence extends beyond the Bank of England. As chairman of the Financial Stability Board, the international financial regulation body, he arguably holds the position of most important non-American figure in global crypto and stablecoin regulation, reporting directly to both G7 and G20 summits. Bailey has publicly expressed concern that stablecoins could create financial instability if they are perceived as a form of money without adequate backing.