Tether Gold

Stablecoin

Gold

Stablecoin issuer Tether holds 116 tons of physical gold, placing it on par with central banks such as those in South Korea, Hungary and Greece.
Tether is “the largest holder of gold outside central banks,” Jefferies wrote in a recent analysis, per a <a href="https://www.ft.com/content/37f80249-2ca0-4369-9898-bde2689d443a?accessToken=zwAGRH4c7QOYkc83-AJJLKBDadOYmL3iaJ1EOg.MEUCIQCFbmjsIiLSkfJCfaGomIRNJ8B82Yf8Zga6dsQkjha4kgIgOG_vpVQAneamfCC7IRWdFH2g481Au7dlBBXMHdW2Yl0&amp;sharetype=gift&amp;token=23bee06f-e118-4f5a-8525-68b8305c6298" rel="noopener noreferrer nofollow" target="_blank">report</a> by the Financial Times. The investment bank added that Tether’s growing appetite for gold may be playing a larger role in the metal’s recent surge than previously assumed.
According to Jefferies, Tether’s gold purchases last quarter accounted for nearly 2% of total global gold demand and almost 12% of central bank purchases. The company said that Tether’s aggressive accumulation over the past two months “is likely to have tightened supply in the short term and influenced sentiment,” potentially driving speculative inflows into gold markets.
Investors cited by Jefferies said Tether aims to acquire another 100 tons of gold in 2025. With the company reportedly on track for $15 billion in profit this year, the target appears well within reach, according to the report.
Related: <a href="https://cointelegraph.com/news/tether-backs-parfin-institutional-usdt-adoption-across-latin-america" rel="noopener noreferrer nofollow">Tether backs Parfin to push institutional USDT adoption across Latin America</a>
<h2 id="tether-doubles-down-on-gold-strategy">Tether doubles down on gold strategy</h2>
Tether has also spent more than $300 million this year buying stakes in precious-metal producers. In June, it <a href="https://cointelegraph.com/news/tether-buys-32-percent-stake-canada-elemental-altus" rel="noopener noreferrer nofollow">acquired a 32% stake</a> in Canada’s public gold royalty firm Elemental Altus Royalties.
In September, the FT reported that Tether is <a href="https://cointelegraph.com/news/tether-invest-across-gold-supply-chain-report" rel="noopener noreferrer nofollow">exploring investments across</a> the gold supply chain, including mining, refining, trading and royalty companies, as part of a broader push to diversify its reserves.
Tether also issues Tether Gold (XAUt), its gold-backed token launched in 2020 and advertised as being supported by bullion stored in a Swiss vault. Blockchain data shows XAUt issuance has doubled over the past six months, with Tether adding 275,000 ounces (about $1.1 billion) since August.
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 <img alt="Tether’s 116-ton gold hoard rivals reserves of Korea and Hungary: Jefferies" src="https://s3.cointelegraph.com/uploads/2025-11/019ac016-615e-7a55-a4ee-b01790fa2528" title="">
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 Tether Gold has a market cap of $2.1 billion. Source: <a href="https://gold.tether.to/" rel="noopener noreferrer nofollow" target="_blank">Tether Gold</a>
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Jefferies said Tether is betting that <a href="https://cointelegraph.com/news/how-gold-backed-tokens-can-act-as-a-hedge-against-crypto-market-volatility" rel="noopener noreferrer nofollow">tokenized gold</a> will finally find traction. Physical gold is cumbersome for retail investors, futures carry roll costs and gold ETFs charge relatively high fees. Tether argues that tokenization solves these frictions.
Related: <a href="https://cointelegraph.com/news/tether-denies-bitcoin-sell-off-invests-btc-gold-land" rel="noopener noreferrer nofollow">Tether denies Bitcoin sell-off rumors, confirms buying BTC, gold, land</a>
<h2 id="tether-increasingly-resembles-a-central-bank">Tether increasingly resembles a central bank</h2>
As Cointelegraph reported, Tether’s day-to-day operations mirror several core functions traditionally <a href="https://cointelegraph.com/news/why-tether-is-acting-more-like-a-central-bank-than-a-stablecoin" rel="noopener noreferrer nofollow">associated with central banks</a>. It mints and redeems USDt (<a href="/tether-price-index" rel="noopener noreferrer">USDT</a>) directly for verified customers, effectively expanding or contracting supply through its primary market pipeline.
It also manages a large reserve portfolio dominated by short-duration US Treasurys, along with gold and Bitcoin (<a href="/bitcoin-price" rel="noopener noreferrer">BTC</a>). The company generates central bank–like income by earning interest on those Treasurys while issuing a non-interest-bearing token.
Beyond that, Tether employs policy-style tools, such as <a href="https://cointelegraph.com/news/tether-freezes-12m-usdt-on-tron" rel="noopener noreferrer nofollow">freezing addresses</a> at the request of law enforcement and phasing out blockchains to reduce risk.
Magazine:<a href="https://cointelegraph.com/magazine/2026-pragmatic-privacy-crypto-canton-zcash-ethereum-foundation/" rel="noopener noreferrer nofollow"> 2026 is the year of pragmatic privacy in crypto — Canton, Zcash and more</a>

Tether’s 116-ton gold hoard rivals reserves of Korea and Hungary: Jefferies

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