Tether’s Expanding Gold Reserves: A New Power Shift in the Global Precious Metals Market

Tether, the world’s largest stablecoin issuer, is rapidly becoming a dominant force in the global gold market. Recent data shows the company now holds 116 tonnes of physical gold, placing it alongside mid-sized central banks such as those of South Korea, Hungary, and Greece. According to analysts at Jefferies, Tether is now “the largest holder of gold outside central banks,” marking a major shift in the dynamics of precious-metal accumulation.

Source: Chatgpt

A Growing Catalyst in Gold Price Movements

A detailed analysis highlighted by the Financial Times suggests that Tether’s aggressive expansion into gold may be influencing the metal’s recent price surge. Jefferies estimates that Tether’s gold acquisitions in the most recent quarter accounted for nearly 2% of global gold demand and around 12% of central bank purchases. This level of accumulation positions Tether as a potential new driver in the gold market. Market Awaits Tether’s Next Major Gold Accumulation

Analysts and investors expect Tether to continue scaling its reserves. Jefferies believes the company may aim to acquire an additional 100 tonnes of gold in 2025. With Tether projected to achieve close to $15 billion in profits this year, the goal appears achievable and aligned with the company’s diversification strategy. Beyond Gold: Tether’s Strategic Diversification in Precious Metals

Tether isn’t limiting its ambitions to bullion holdings. The company has invested over $300 million this year into stakes within the precious-metals sector. In June, Tether acquired a 32% stake in Elemental Altus Royalties, a Canadian gold royalty company. The firm is also exploring investments across the broader precious-metals supply chain—including mining, refining, trading, and royalty operations—highlighting its growing interest in real-world asset ecosystems. XAUt: Tether’s Bet on Tokenized Gold

Tether’s gold-backed digital asset, Tether Gold (XAUt), launched in 2020, is gaining significant momentum. Blockchain data reveals that XAUt’s supply has doubled in the past six months, with Tether issuing 275,000 additional ounces—worth roughly $1.1 billion—since August.Jefferies suggests Tether is betting on tokenized gold becoming mainstream, as it offers a more efficient alternative to physical gold storage, futures contracts, and ETF management fees. Tokenization may provide a scalable solution for modern investors seeking exposure to gold without traditional barriers.

Is Tether Acting Like a Modern Central Bank?

Industry observers note that Tether’s operations increasingly resemble those of a digital-era central bank. By minting and redeeming USDT for verified customers, the company effectively manages liquidity across its network—similar to monetary supply adjustments.Tether also maintains a vast reserve portfolio dominated by short-term U.S. Treasurys, supplemented by gold and Bitcoin. These assets generate central-bank-like profits, as Tether earns interest on Treasurys while issuing a non-yielding stablecoin.

Additionally, Tether implements policy-style measures such as freezing addresses in cooperation with law enforcement and phasing out higher-risk blockchains—further mirroring the oversight responsibilities of centralized financial institutions.

Disclaimer

This article is created solely for informational and educational purposes based on publicly available data and industry analysis. It does not constitute financial, investment, or legal advice.