• Tether’s gold reserves reached a record $12.9 billion in September 2025, equating to 104 tons and doubling since the year’s start.

• Tether plans to acquire around 100 tons of gold in 2025, enhancing its reserves and supporting USDT stability.

• With 116 tons held by Q3 end, Tether ranks as the largest non-sovereign gold holder, impacting global supply by about 2% through Q3 purchases alone.

Discover how Tether’s massive gold accumulation is driving the 2025 surge in gold prices to $4,049 per ounce. Explore the stablecoin giant’s strategy and its market implications—stay informed on crypto’s gold rush today.

What Is Tether’s Role in the Recent Gold Price Surge?

Tether’s gold accumulation is playing a pivotal role in the recent surge of gold prices, as highlighted by investment bank Jefferies in a recent report. Tether gold holdings have grown substantially, with the company amassing over 116 tons by the end of the third quarter, tightening supply and fueling the precious metal’s rally to nearly $4,049 per ounce—a 60% increase year-to-date. This shift marks a departure from traditional drivers like inflation or geopolitical tensions, positioning Tether as a key new force in the gold market.

How Has Tether’s Gold Strategy Evolved in 2025?

Tether’s commitment to gold has intensified this year, with reserves doubling since the second quarter and reaching a peak of $12.9 billion in September, equivalent to 104 tons of physical gold. According to Jefferies analysts, including lead researcher Andrew Moss, on-chain data and attestation reports confirm that Tether added approximately 26 tons in the third quarter alone, representing about 2% of global gold demand. This accumulation backs both its USDT stablecoin, with 104 tons valued at $13.67 billion, and the XAUt token, supported by 12 tons worth $1.57 billion.

The strategy aligns with broader market dynamics, including BRICS nations’ gold stockpiling and waning trust in fiat currencies. Tether CEO Paolo Ardoino emphasized this in a statement: “Tether Gold represents the perfect synthesis of tradition and innovation. With XAUt, we’re offering individuals and institutions around the world the ability to hold, transfer, and store gold-backed value with complete assurance, no compromises on backing, compliance, or utility.” This approach positions XAUt as a compliant alternative to physical gold ownership, with its market cap hovering around $1.5 billion and over 250,000 tokens in circulation.

Jefferies’ analysis, drawing from investor disclosures and blockchain analytics, projects Tether could add up to 60 tons annually if it allocates half of its anticipated $15 billion in 2025 profits to bullion. Gold’s performance underscores this impact: while it dipped 7.2% over the past 30 days, it has climbed 26% in the last six months, outpacing many traditional assets. Experts note that Tether’s 7% allocation to gold in its reserves—now making it the world’s largest non-sovereign holder on par with smaller central banks—signals a maturing intersection of cryptocurrency and commodities.

Crypto is joining the global gold rush:

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

— The Kobeissi Letter (@KobeissiLetter) November 12, 2025

Despite these gains, challenges persist. Gold’s volatility, influenced by U.S. Federal Reserve policies and global economic shifts, means Tether’s strategy must navigate regulatory scrutiny. The company’s planned GENIUS Act-compliant stablecoin, USAT, is not expected to require gold reserves, potentially altering future demand patterns for USDT and gold overall. Nonetheless, Jefferies maintains that Tether’s ongoing purchases will continue supporting price stability as its ecosystem expands.

Frequently Asked Questions

What Are Tether’s Current Gold Holdings and How Do They Back Its Products?

Tether holds approximately 116 tons of gold as of Q3 2025, with 104 tons backing USDT stablecoin reserves valued at $13.67 billion and 12 tons supporting the XAUt token at $1.57 billion. This physical backing ensures redeemability and compliance, making Tether a dominant player in gold-linked digital assets, as per attestation data from independent auditors.

Why Is Tether Planning to Buy 100 Tons of Gold in 2025?

Tether’s plan to purchase around 100 tons of gold this year stems from its strategy to diversify reserves and hedge against fiat volatility, as revealed by investor discussions with Jefferies. CEO Paolo Ardoino has publicly discussed adding gold to bolster stability, projecting a potential $1,000-per-ounce price impact while aligning with growing demand for commodity-backed cryptocurrencies.

Key Takeaways

• Tether as Gold Market Influencer: The stablecoin issuer’s 116-ton holdings have tightened global supply by 2% in Q3, driving gold’s 60% yearly surge to $4,049 per ounce.
• Strategic Investments Beyond Purchases: Tether deployed over $300 million into gold royalty firms this year, including a $105 million stake in Elemental Altus Royalties, signaling a comprehensive metals approach.
• Future Outlook and Talent Acquisition: With hires from HSBC’s metals trading team, Tether is poised to expand its gold ecosystem, though new stablecoins like USAT may shift reserve dynamics—monitor for sustained market impact.

Conclusion

In summary, Tether’s gold accumulation and Tether gold holdings have redefined drivers of gold prices in 2025, with 116 tons of reserves positioning the company as a non-sovereign powerhouse equivalent to central banks. Backed by on-chain transparency and expert insights from Jefferies, this strategy not only stabilizes USDT but also bridges crypto and traditional commodities amid BRICS accumulation and fiat uncertainties. As Tether eyes further expansions, including royalty investments and expert hires from HSBC, investors should watch how these moves sustain gold’s momentum—consider diversifying portfolios with gold-backed assets for long-term resilience.

Tether’s Broader Investments in the Gold Ecosystem

Beyond direct purchases, Tether has deepened its involvement in the gold sector through strategic equity stakes. The company committed $105 million to Elemental Altus Royalties Corp., acquiring a 31.9% stake in the Canadian firm focused on mining royalties. This follows an earlier investment, highlighting Tether’s intent to channel cryptocurrency profits into tangible commodity assets for diversification and yield generation.

Jefferies first identified Tether’s gold interest during meetings with miners and royalty firms in Denver last fall. The bank’s report details over $300 million invested in royalty and streaming companies this year, underscoring a multifaceted metals strategy. This approach mitigates risks associated with volatile crypto markets by tying reserves to enduring assets like gold, which offers intrinsic value and inflation protection.

Adding to its capabilities, Tether recently recruited senior metals traders from HSBC, including Vincent Domien, former global head of metals trading, and Mathew O’Neill, who managed precious metals origination in Europe, the Middle East, and Africa. These professionals are set to join in the coming months, enhancing Tether’s expertise in physical gold trading and supply chain management. Such moves demonstrate Tether’s evolution from a stablecoin issuer to a comprehensive player in the commodities space, potentially influencing gold pricing through increased institutional demand.

Analysts at Jefferies emphasize that while Tether’s actions have boosted sentiment, they complement rather than overshadow central bank flows, which remain the dominant force. With gold’s current trading level at $4,049 per ounce and projections for continued accumulation tied to USDT growth, the interplay between digital assets and precious metals is set to shape market trends. Tether’s gold-backed products, like XAUt, provide users with seamless access to physical gold without traditional storage hassles, promoting broader adoption in a digital economy.

The firm’s transparency efforts, including regular attestations, further build trust. As global confidence in digital currencies grows, Tether’s gold strategy exemplifies how blockchain can modernize legacy assets. Investors and institutions alike are advised to evaluate these developments for portfolio strategies, recognizing the stabilizing role of such reserves in an uncertain financial landscape.