Tether, the world's largest stablecoin issuer, has quietly become a formidable force in the global gold market, according to a new analysis from Jefferies. The Wall Street investment bank argues that Tether's gold holdings—now totaling 116 metric tons—rival those of sovereign nations like South Korea and Greece, and its aggressive accumulation is tightening supply and supporting historically high gold prices.
Gold Hoard on Par with Central Banks
Analysts Fahad Tariq and Andrew Moss from Jefferies detailed that as of the end of Q3 2025, Tether's gold reserves are spread across its gold-backed token XAUT and its USDT stablecoin backing. The 116-tonne stash places the stablecoin issuer shoulder-to-shoulder with mid-tier central banks and well ahead of most institutional investors.
In Q3 alone, Tether added 26 tonnes of gold, representing roughly 2% of total global demand during the period and more than 12% of all central bank purchases. Jefferies notes that this pace of buying, far from passive, has begun to meaningfully tighten physical supply and contributed to gold's surge past $4,000 per ounce—a 50% rally this year.
From Reserve Hoarding to Vertical Integration
Tether's gold ambitions go beyond balance-sheet allocation. The company has deployed over $300 million into mining royalties and streaming companies and hired former HSBC precious metals traders. Jefferies describes these moves as the early stages of a vertically integrated metals strategy—a logical step for a company whose balance sheet now exceeds some national treasuries.
The analysts project that if Tether allocates half of its expected 2025 profits to gold purchases, it could add as much as 60 tonnes annually. That would position Tether as a structural force in the gold market, not a seasonal anomaly.
Risks and the USAT Wildcard
Jefferies also flags caveats. 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 Tether's history of scrutiny means any misstep could have outsized market impact.
Still, the report's bottom line is unequivocal: Tether now matters in the gold market—perhaps far more than most global traders realize. As USDT issuance continues to expand globally, Tether's golden appetite may only grow.