Tether's Significant Gold Accumulation
Tether has quietly become one of the world’s largest private gold holders, amassing 116 tons of physical gold. This reserve size is comparable to the central banks of South Korea, Hungary, and Greece, according to an analysis by Jefferies shared via the Financial Times.
Jefferies notes that Tether is now “the largest holder of gold outside central banks,” and its rapid accumulation may be influencing global gold markets more than previously recognized. The firm estimates that Tether’s purchases last quarter accounted for nearly 2% of total global demand and almost 12% of all central bank buying, contributing to short-term supply tightening and bullish market sentiment.
Investors expect Tether to acquire an additional 100 tons in 2025. This target is made feasible by the company’s projected $15 billion profit this year.
Tether's Expanding Role in the Gold Industry
This year alone, Tether has spent over $300 million acquiring stakes in precious-metal producers, including a 32% stake in Canada’s Elemental Altus Royalties. The company is reportedly exploring broader investments across the gold ecosystem—from mining to refining—as part of its strategy to diversify reserves beyond U.S. Treasurys.
Tether’s gold-backed token, Tether Gold (XAUt), has also seen rapid growth. On-chain data shows issuance doubling in six months, with an additional 275,000 ounces (worth approximately $1.1 billion) minted since August. Tether argues that tokenized gold removes traditional barriers such as custody, storage, and ETF fees.
A Stablecoin Issuer Functioning Like a Central Bank
Tether’s operational model increasingly mirrors that of a sovereign monetary authority. The company mints and redeems USDT, manages vast reserves—including gold, Bitcoin, and short-term U.S. Treasurys—and even exercises powers like freezing addresses linked to illicit activity.
With its expanding gold portfolio and influence on global liquidity, Tether’s role is beginning to resemble that of a non-state central bank in the digital asset economy.