Tether Emerges as a Major Global Gold Buyer, Rivaling Central Banks

Tether has rapidly positioned itself as one of the world’s most aggressive gold buyers, rivaling—and in some periods surpassing—central banks in scale. The stablecoin issuer has been steadily converting profits from its USDT operations into physical gold, transforming itself from a crypto infrastructure firm into a sovereign-scale gold accumulator.

In the fourth quarter of 2025 alone, Tether added an estimated 27 metric tons of gold to its reserves. This followed a similar pace in Q3, when analysts estimate the company acquired around 26 tons. According to earlier reports, Tether may have purchased as much as 116 tons of gold across 2025, potentially outbuying all central banks during the year. While final official-sector data is still pending, industry observers suggest Tether is likely among the top three global gold buyers for the quarter.

These purchases come amid a historic rally in gold prices. Spot gold has risen sharply, gaining roughly 18% year-to-date on top of a dramatic surge the previous year, breaking multiple psychological price levels. Against this backdrop, Tether’s gold holdings—now valued at approximately $4.4 billion—have become a meaningful source of marginal demand in an already tight market.

Unlike central banks, Tether’s motivation is not monetary policy or balance-of-payments management. The company primarily funds its gold accumulation using profits generated from backing USDT with interest-bearing assets such as U.S. Treasury bills. With around $187 billion in USDT in circulation, even modest yields translate into significant capital for reserve diversification.

This strategy has effectively turned Tether into a hybrid entity: part stablecoin issuer, part asset manager, and increasingly a private-sector gold holder operating at a sovereign scale. Gold accounted for roughly 7% of USDT reserves as of late 2025, while U.S. Treasuries remained the dominant backing asset.

Tether’s gold accumulation also supports its tokenized gold product, XAUT, which now represents a majority share of the global gold-backed stablecoin market. As stablecoins continue to scale, Tether’s approach highlights a broader shift in global gold demand, raising important questions about the growing influence of private digital dollar issuers on monetary credibility and financial stability.