Tether, the issuer of the world's largest stablecoin USDT, has made significant strides in the gold market, accumulating a massive 116-ton gold hoard that rivals the reserves of some countries. According to a recent report by investment bank Jefferies, this accumulation has positioned Tether as a major player in the gold market, influencing prices and supply dynamics.
Tether's gold reserves comprise 12 tons backing its XAUt token and 104 tons supporting USDT. This makes Tether the world's largest non-sovereign holder of gold, with holdings comparable to those of small central banks. The company's aggressive acquisition strategy saw it add 26 tons of gold in the third quarter of 2025 alone, accounting for approximately 2% of global demand during that period.
Jefferies analysts, led by Andrew Moss, have provided insights into the scale and impact of Tether's gold acquisitions. They suggest that Tether's strategy could lead to nearly 60 tons of additional gold purchases annually if half of its anticipated $15 billion profit for 2025 is invested in bullion.
The stablecoin issuer's gold acquisitions have significantly contributed to a more than 50% increase in gold prices this year. Currently, gold is trading at approximately $4,080 per ounce. The company's focus on gold is a calculated strategy to strengthen USDT's backing and hedge against macroeconomic uncertainties, thereby increasing confidence in USDT and XAU₮.
Beyond direct bullion purchases, Tether has also deepened its involvement in the gold industry through strategic investments. In June 2025, Tether announced a significant investment to acquire up to a 37.8% strategic equity stake in the Canadian-listed gold royalty company Elemental Altus Royalties Corp., with the option to increase its stake to 51.8%. Tether has invested $300 million in gold royalty and streaming companies. Further solidifying its institutional approach, Tether has hired top metals traders from HSBC.
With 116 tons of gold, Tether's reserves now rival those of nations such as Indonesia, South Korea, Hungary, and Greece. This accumulation has even exceeded official central bank purchases over two quarters through September 30, 2025.
Tether's aggressive gold acquisition has created a clear delineation of potential winners and those facing increased challenges across the financial ecosystem. By significantly diversifying its reserves and capitalizing on rising gold prices, Tether and its ecosystem (XAUt holders) stand as primary beneficiaries.
Jefferies projects that Tether may maintain its gold exposure as USDT supply grows and bullion continues to represent roughly 7% of reserves. However, Tether's planned GENIUS Act-compliant stablecoin, USAT, will not require gold holdings, leaving its long-term effect on USDT-linked demand yet to be determined.
