Tether has rapidly become one of the largest non-sovereign gold holders in the world, accumulating 116 tons of bullion and stirring up global gold markets.
Key Takeaways
- Tether now holds at least 116 tons of gold, rivaling the reserves of smaller central banks.
- In Q3 2025 alone, Tether added 26 tons of gold, accounting for about 2% of global demand.
- Jefferies analysts link Tether’s gold purchases to the recent rally in gold prices, which surged over 50% this year.
- The firm has also invested over $300 million in gold royalty companies and hired two ex-HSBC metals traders, signaling a broader commodity strategy.
What Happened?
Tether, the stablecoin issuer behind USDT and XAUt, has emerged as a key player in the gold market. According to a report by investment bank Jefferies, the company now holds 116 tons of gold. This significant accumulation has occurred over just a few quarters and is seen as a major factor in the sharp rise in gold prices during 2025.
Crypto is joining the global gold rush:
— The Kobeissi Letter (@KobeissiLetter) November 12, 2025
Tether’s gold holdings hit a record $12.9 billion in September.
This equates to 104 tonnes of physical gold.
The value of its gold holdings has DOUBLED since the beginning of the year, while physical reserves have also doubled since Q2… pic.twitter.com/J3nUBnE6I4
Tether’s Gold Reserves Surpass Expectations
Tether’s rapid bullion accumulation is raising eyebrows across financial markets. In the third quarter alone, the company bought approximately 26 tons of gold, accounting for about 2% of the world’s gold demand in that period.
- Jefferies estimates 12 tons of gold back Tether’s gold-backed token XAUt, which has a market cap around $1.5 billion.
- An additional 104 tons support Tether’s flagship stablecoin, USDT, now worth about $13.67 billion.
This makes Tether the largest non-sovereign holder of gold, on par with smaller national central banks. The gold now represents roughly 7% of the company’s total reserves.
Driving a Surge in Gold Prices
Investment bank Jefferies identified Tether as a major new force behind the precious metal’s surge. Gold prices have climbed over 50% year-to-date, reaching around $4,080 per ounce. Analysts argue that Tether’s sustained demand has helped tighten short-term supply, boosting bullish sentiment even if it hasn’t overwhelmed central bank flows.
Jefferies believes traditional market factors no longer fully explain the gold rally, noting that Tether’s bullion strategy is reshaping the market. Their analysis highlights how attestation data and on-chain activity point to aggressive accumulation by the crypto firm.
Broader Strategic Moves in Gold
Tether’s commitment to gold extends beyond direct purchases:
- The firm has invested more than $300 million into gold mining royalty and streaming companies.
- It has acquired a 31.9% stake in Elemental Altus Royalties Corp., a Canadian firm specializing in mining royalties.
- Tether has recently hired two senior metals traders from HSBC, including global head of metals trading Vincent Domien and regional specialist Mathew O’Neill.
These moves reflect a broader metals strategy that combines commodity-backed digital assets, mining investments, and deep talent from traditional finance.
New Stablecoin May Shift Gold Demand
Tether plans to launch a new GENIUS Act-compliant stablecoin called USAT, which unlike XAUt and USDT, won’t require gold reserves. The long-term impact of this move on Tether’s gold demand is still unclear.
While it’s uncertain whether USAT will dilute the role of gold within Tether’s ecosystem, analysts say that if half of the projected $15 billion in 2025 profits are used for gold purchases, Tether could add nearly 60 tons of bullion annually.
CoinLaw’s Takeaway
I’ve been tracking crypto firms for years, and what Tether is doing here is truly next level. They’re not just dipping into gold as a hedge, they’re going all in, turning crypto profits into hard assets and shaking up the precious metals market while doing it. Bringing on veteran metals traders and scooping up royalty companies? That’s not just opportunism, it’s a clear sign they’re playing a long game in commodities.
From my experience, when a player with Tether’s size moves this decisively, it forces everyone from hedge funds to central banks to pay attention. Whether USAT shifts the gold focus or not, the strategy is loud and clear. Tether is anchoring itself in real-world assets, and that’s a big deal.
