Main Points :
- Tether has accumulated an estimated 116 tons of gold—an amount comparable to the reserves of a small central bank.
- Jefferies analysts believe Tether’s gold accumulation has contributed materially to global gold price increases.
- Gold now represents around 7% of Tether’s reserves, supporting both USDT and Tether Gold (XAUT).
- With predicted profits of $15 billion in 2025, Tether could add 60 tons of gold per year if it allocates half its profits to bullion.
- Tether is also investing in mining royalties, streaming companies, and has hired former HSBC metals traders—indicating a strategic long-term push into the broader gold ecosystem.
- The impact of Tether’s new compliant stablecoin “USAT” is unclear as it may not require gold backing.
1. Introduction: A New Kind of Global Gold Player
Over the past year, global financial markets have watched gold soar more than 50%, reaching about $4,080 per ounce. Analysts searched for explanations beyond traditional factors like central bank demand or geopolitical uncertainty. A new and unexpected force emerged: Tether, the issuer of the world’s largest stablecoin, USDT.
According to a recent Jefferies report, Tether has quietly accumulated at least 116 tons of gold—making it one of the largest private-sector holders of gold on the planet. This scale places the stablecoin issuer alongside the gold reserves of small sovereign central banks.
While Tether’s presence in global bond markets has been widely publicized, its increasing role in the gold market has only recently come into focus. The accumulation has major implications, not only for gold pricing but for the broader digital asset economy and stablecoin reserve transparency.
This article synthesizes the core findings of the Jefferies report, incorporates broader industry developments, and analyzes the implications for crypto investors looking for new revenue opportunities and practical blockchain applications.
2. How Much Gold Does Tether Really Hold?
Estimated 116 Tons of Gold
Jefferies analysts, using reserve attestations and on-chain activity patterns, estimate the following breakdown:
- 12 tons backing Tether Gold (XAUT)
→ ≈ $1.57 billion - 104 tons backing USDT reserves
→ ≈ $13.67 billion
This totals 116 tons, making Tether:
- The largest non-government gold holder globally
- Comparable to small national central banks
- A significant market mover in the bullion ecosystem
Jefferies highlighted that in Q3 alone, Tether purchased an estimated 26 tons, which is roughly 2% of global quarterly gold demand.
3. Why Is Tether Buying So Much Gold?
3.1 Support for USDT and XAUT
Gold now represents around 7% of all Tether reserves, reinforcing the company’s narrative of diversifying away from U.S. Treasury concentration.
3.2 Influence on Gold Market Dynamics
A buyer accumulating over 100 tons in a short period naturally tightens supply. Jefferies believes Tether’s actions contributed to the recent $1,000-per-ounce surge.
3.3 Investor Confirmations
Investor conversations cited in the report indicated Tether targeted 100 tons of new gold purchases for 2025—an estimate that appears consistent with actual flows.
4. How Tether’s Profits Drive Future Gold Buying
Tether’s business model has shifted from a stablecoin operator to a highly profitable financial institution earning billions annually.
- 2024 estimated profit: ≈ $11–12 billion
- 2025 projected profit (Paolo Ardoino): $15 billion
If Tether allocates just 50% of profits to gold accumulation:
- ≈ 60 tons per year → ≈ $8 billion annually
This would cement Tether as one of the largest accumulators of gold globally, potentially influencing both short-term pricing and long-term supply structures.
5. Strategic Expansion: Mining, Royalties, and Metal Trading
Tether is not merely buying gold—they are building a gold ecosystem.
5.1 $300 Million Allocated to Mining Royalties & Streaming Firms
In 2025 alone, Tether invested more than $300 million into companies involved in:
- Gold mining royalties
- Streaming contracts
- Mining operations optimization
This resembles strategies used historically by major commodity trading houses.
5.2 Hiring Experienced HSBC Metals Traders
Tether recently hired two senior metals traders from HSBC, indicating a pivot:
- From passive gold holding
- Toward active gold market participation
This move is interpreted as evidence that Tether is accelerating, not slowing, its gold strategy.
6. Impact on Stablecoin Markets and Blockchain Adoption
6.1 USDT and Gold Reserves
USDT remains the world’s largest stablecoin with a market cap exceeding $118 billion. A gold-supported reserve structure:
- Enhances perceived safety
- Improves diversification
- Attracts investors wary of concentrated Treasury exposure
6.2 XAUT as a Growing Digital Gold Product
XAUT, with a market cap of ~$1.5 billion, remains small compared to USDT, but its physical backing establishes a bridge between:
- Traditional gold markets
- Blockchain settlement systems
This fits a broader trend of tokenized real-world assets (RWAs).
7. How USAT May Change the Future Stablecoin Landscape
Tether’s planned US-compliant stablecoin, USAT, will follow the GENIUS regulatory framework and does not require gold backing.
This creates uncertainty:
- Will gold allocation slow down once USAT becomes the preferred U.S. market product?
- Or will USDT remain Tether’s international flagship, continuing gold reserve expansion?
Jefferies notes that long-term gold demand remains unclear.
8. Broader Market Context: Why Gold Is Attractive in 2025
8.1 Central Bank Demand at Record Highs
Global central banks continue accumulating bullion as geopolitical tensions and de-dollarization debates rise.
8.2 Rising Interest in Crypto-Gold Hybrids
The intersection of:
- tokenized gold
- stablecoins
- blockchain settlement
is becoming a new frontier for fintech. Tether’s actions directly accelerate this evolution.
8.3 Gold as a Hedge Against Stablecoin Reserve Risks
USDT critics often raise concerns about reserve transparency. Gold provides:
- a universally recognized store of value
- no counterparty risk
- a hedge against U.S. regulatory pressures
9. Practical Implications for Crypto Investors and Builders
9.1 New Opportunities in Tokenized Metals
XAUT and similar products are creating a new asset class:
gold that settles instantly on-chain.
This benefits:
- multi-chain traders
- remittance networks
- DeFi collateral markets
9.2 Liquidity Impacts
Large gold purchases from Tether may create:
- short-term tightening → bullish gold pressure
- long-term strategic accumulation → stable demand floor
For investors seeking alternative stores of value, this dynamic is highly relevant.
9.3 Implications for Non-Custodial Wallets and VASP Operators
Projects like yours (DOPAY, XXI ecosystem) can benefit from:
- integrating XAUT
- offering gold-backed payment rails
- using tokenized gold as collateral or settlement asset
10. Conclusion: A Stablecoin Giant Becomes a Global Gold Power
Tether’s rapid evolution from a stablecoin issuer to a major gold market participant signal a profound structural shift. By accumulating over 116 tons of gold, investing in mining operations, and hiring metals traders, Tether is positioning itself as a long-term cornerstone in both the digital asset and physical commodity markets.
For crypto investors and builders, this convergence of gold and blockchain is not merely a trend—it is a foundational realignment of value systems. Stablecoins backed by hard assets, tokenized metals, and hybrid financial systems may define the next decade of blockchain finance.
Tether’s gold strategy is not just about reserves. It is a signal of the future:
a world where digital and physical assets merge into a unified global financial network.
