Synopsis: Tether holds 116 tons of gold, rivaling central banks like South Korea and Hungary, impacting gold prices significantly. Its 2025 buying spree tightened supply, boosting market sentiment and fueling a 50% gold price surge. Tether’s gold strategy reshapes asset diversification and market influence.
Tether’s massive gold stash, totaling 116 tons, is now on par with the gold reserves held by central banks in South Korea and Hungary. This stablecoin issuer’s gold holdings have stirred the market, with experts at Jefferies highlighting the firm’s growing influence on gold prices. Tether’s aggressive gold buying in 2025 has tightened supply and boosted market sentiment like never before.
Tether’s Gold Holdings
Tether holds 116 tons of physical gold, making it the largest private holder outside central banks. Its gold reserves are roughly valued between $13.7 billion and $14 billion based on recent prices. This amount rivals the reserves of entire nations, putting Tether alongside South Korea, Hungary, and Greece.
In the third quarter of 2025 alone, Tether bought 26 tons of gold, representing almost 2% of the global gold demand. This huge purchase volume accounts for nearly 12% of central bank gold buying for that period. Experts at Jefferies suggest this scale of acquisition is unprecedented for a private company and has likely impacted the gold market supply and prices significantly.
How Tether’s Strategy Influences the Market
Jefferies points out that Tether’s buying spree over the last few months has helped push gold prices sharply higher in 2025. The company’s purchases have reportedly tightened gold supply in the short term, which in turn has driven speculative investment inflows. Gold prices surged over 50% this year, reaching $4,379 an ounce in mid-October before slightly retreating.
Tether’s role in this second phase of the rally since mid-August is considered a key factor, alongside traditional demand drivers like central bank buying and geopolitical uncertainties. Tether’s move also signals growing institutional interest in gold through digital channels, reshaping how we understand gold demand.
Expanding Gold-Linked Assets and Investments
Besides holding physical gold, Tether has invested over $300 million this year in gold mining and royalty companies. This vertical integration includes acquiring a significant stake in Canadian gold royalty firm Elemental Altus Royalties. Tether also issues XAUt, a gold-backed token, supported by bullion stored in Switzerland.
The token’s issuance has doubled in the past six months, adding more than 275,000 ounces worth about $1.1 billion. Their bet on tokenized gold aims to ease access for retail investors compared to handling physical bullion or ETFs, which come with costs and complexities.
Tether’s Plans and Risks
According to investors cited by Jefferies, Tether aims to buy another 100 tons of gold in 2025. With projected profits of $15 billion for the year, this goal looks feasible. However, concerns are growing about the risk exposure tied to Tether’s deepening gold and Bitcoin reserves.
S&P Global recently downgraded Tether’s stability rating, warning that price crashes could impact the company’s reserve backing. On the other hand, Tether plans to launch a new stablecoin under the GENIUS Act that won’t include gold in its reserves. This shift could affect future gold demand, yet for now, Tether’s strategy is reshaping how stablecoins diversify assets and influence traditional markets.
Tether’s leap into physical gold reveals a new dimension of crypto firms merging digital finance with tangible assets. This not only challenges traditional reserve holders but may mark a lasting change in how gold is bought and held worldwide. Watching Tether’s moves will be crucial to understanding the future of both crypto stability and the gold market.
Written By Fazal Ul Vahab C H
