Wall Street is taking a hard look at stablecoin giant Tether's expanding footprint in the global gold market. A new research report from Jefferies, a New York-based investment bank, frames Tether as a 'private-sector central bank' whose bullion accumulation is quietly becoming a structural force in global gold pricing.
Holdings Now on Par with Sovereign Nations
According to analysts Fahad Tariq and Andrew Moss, Tether held 116 metric tons of gold by the end of Q3 2025. This stash is split between reserves backing its gold-pegged token XAUT and a larger portion reinforcing the USDT balance sheet. The amount places Tether shoulder-to-shoulder with sovereign holders like South Korea and Greece—and far beyond most institutional investors.
Importantly, the report notes Tether's buying is not decorative but strategic. In Q3 alone, Tether added 26 tons of gold, accounting for roughly 2% of global gold demand and more than 12% of all central bank purchases in the period. Jefferies estimates this level of accumulation has meaningfully tightened physical supply.
Gold at $4,000 and Tether’s Role
Gold prices crossed $4,000 per ounce this year, climbing more than 50% amid investor anxiety, geopolitical tensions, and central bank buying. Jefferies argues Tether's buying didn't just ride that wave—it helped lift it. The analysts project that if Tether channels half of its expected 2025 profits into bullion, it could add as much as 60 tons annually, turning stablecoin demand into a long-term structural driver of gold prices.
Beyond stockpiling, Tether has funneled over $300 million into mining royalty and streaming companies and hired former HSBC metals traders. Jefferies describes these moves as early steps toward a vertically integrated metals strategy—a statement that becomes less dramatic when you remember Tether already commands a balance sheet larger than some national treasuries.
Caveats: USAT and Regulatory Risks
The report tempers the bullish story with caution. Tether's upcoming GENIUS Act-compliant stablecoin, USAT, does not require gold backing, potentially reducing long-term bullion demand. Regulatory shifts could disrupt reserve strategies. And given Tether's history of scrutiny, any misstep could reverberate far beyond crypto-native circles.
Still, Jefferies' takeaway is clear: Tether now matters in the gold market—perhaps far more than global traders realize. If USDT continues to expand globally, Tether's golden appetite may only grow. The market may need to start treating the crypto issuer as a de facto central bank for gold.