Tether's Gold Holdings Reach 116 Tons, Comparable to Small Central Banks

Tether's Expanding Gold Reserves

Investment bank Jefferies has identified Tether as a significant new buyer in the gold market, attributing part of the recent price surge to the stablecoin issuer's substantial bullion acquisitions.

According to attestation data and on-chain activity, Tether has amassed a considerable amount of gold in recent months, tightening supply and contributing to a sharp rally. The precious metal has increased by over 50% this year, currently trading at approximately $4,080 per ounce.

Impact of Tether's Gold Accumulation

Jefferies first noted Tether's interest in gold after meetings with miners and royalty firms in Denver last year. Public statements from CEO Paolo Ardoino about bolstering gold reserves and a $1,000-per-ounce price spike reinforced this interest.

Analysts led by Andrew Moss estimate Tether held at least 116 tons of gold by the end of the third quarter. This includes 12 tons backing its XAUt token, valued around $1.57 billion, and about 104 tons backing USDT, valued at approximately $13.67 billion. This makes Tether the largest non-sovereign gold holder, on par with smaller central banks.

The analysts highlighted Tether's aggressive accumulation pace, acquiring around 26 tons in the third quarter alone, equating to about 2% of global demand. Although not enough to overwhelm central-bank flows, this buying likely tightened supply and spurred bullish sentiment.

Future Projections and Investments

Tether is expected to continue its gold acquisitions as USDT grows, with gold remaining about 7% of reserves. Ardoino projects $15 billion in profit by 2025, with analysts suggesting that investing half of this into bullion could add nearly 60 tons annually.

Tether's upcoming GENIUS Act-compliant stablecoin, USAT, will not require gold reserves, leaving its long-term impact on USDT and gold demand uncertain.

The bank also cited Tether's expanding investments in the gold sector, including over $300 million in royalty and streaming companies this year. The hiring of two top HSBC metals traders indicates an acceleration in Tether's gold strategy.