Tether’s gold holdings surge to 116 tonnes, competing with smaller central banks
Investment bank Jefferies said the recent surge in gold prices cannot be explained by traditional drivers alone and instead points to Tether as a major new buyer.
Proof data and on-chain activity show that stablecoin issuers have amassed significant gold bullion in recent months, which has helped tighten supply and fuel a sharp rally, the bank said in a report Thursday.
The precious metal is up more than 50% this year and is currently trading at around $4,080 an ounce.
Jefferies first flagged Tether’s interest after the company met with miners and royalty companies in Denver last fall, and investors told Tether Bank that they were targeting a purchase of about 100 tons this year. CEO Paolo Ardoino’s public comments about the addition of gold to its reserves and the $1,000 per ounce price jump further strengthened that argument.
Analysts led by Andrew Moss estimated that Tether held at least 116 tonnes of gold at the end of the third quarter, with 12 tonnes backing the XAUt token (worth about $1.57 billion) and about 104 tonnes backing USDT (worth about $13.67 billion), making it the world’s largest non-state holder and on par with smaller central banks. According to CoinMarketCap, XAUt’s market capitalization is currently around $1.5 billion.
The speed of accumulation is striking. That’s about 26 tons in the third quarter alone, or about 2% of global demand, analysts said. Although not enough to overwhelm the central bank, the buying is likely to tighten near-term supply and increase optimism.
The report stated that Tether is expected to continue accumulating as USDT grows and gold maintains around 7% of reserves. With Ardoino projecting 2025 revenues of $15 billion, the bank’s analysts calculated that investing just half of that in gold bullion could add nearly 60 tonnes a year.
The report noted that Tether’s planned GENIUS Act-compliant stablecoin, USAT, does not require gold reserves, making its long-term impact on USDT and gold demand uncertain.
Analysts also noted Tether’s increased investments across the gold ecosystem, including more than $300 million deployed this year into loyalty and streaming companies. The bank views these holdings as further evidence of its broader metals strategy. The recent hiring of two of HSBC’s top metals traders suggests that Tether’s gold trading is accelerating rather than easing.
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