Tether Becomes Largest Private Gold Holder, Scaling Reserves and Metals Strategy
Jefferies reports Tether held about 116 metric tonnes of physical gold at the end of Q3 2025, making it the largest non-sovereign gold holder. The firm added roughly 26 tonnes in Q3 alone — around 2% of quarterly global gold demand and more than 12% of central bank purchases that period — tightening near-term bullion supply. Tether’s gold backs its tokenized gold product (XAUt) and strengthens USDT’s balance sheet; XAUt supply roughly doubled over six months as Tether bought an estimated 275,000 ounces (~$1.1bn) of bullion since August. Price data noted spot gold trading near $4,150/oz with intraday volatility. Beyond bullion accumulation, Tether has deployed over $300m into mining royalties and streaming companies (including a reported 32% stake in Elemental Altus Royalties), hired former metals traders, and is building an early-stage vertically integrated metals strategy spanning mining, refining, trading and royalty exposure. Jefferies projects Tether could acquire another ~100 tonnes in 2025, funded by strong USDT profit margins (projected near $15bn this year). Analysts warn that sustained Tether demand can tighten supply, lift gold prices, boost interest in tokenized bullion (XAUt), and affect liquidity dynamics around USDT operations. For crypto traders: watch potential upward pressure on gold and correlated safe-haven assets, flows into tokenized gold, and any market liquidity or redemption impacts tied to large-scale reserve management in USDT.
Bullish
Tether’s large and accelerating accumulation of physical gold is likely bullish for gold prices and for tokenized gold demand (XAUt). The purchases represented a meaningful share of quarterly global demand and central bank buying, tightening near-term supply — a direct upward pressure on gold. For crypto markets, stronger gold prices and increased interest in XAUt can lead to higher flows into tokenized bullion and complementary safe-haven assets; this may also shift some liquidity into USDT-backed metal products. Short term, episodes of buying or announcements can spike correlated safe-haven moves and create squeeze dynamics in bullion markets. Longer term, continued Tether accumulation and vertical integration into mining/royalty businesses could sustain structural demand, supporting higher gold valuations and steadier demand for XAUt. However, traders should monitor liquidity signals: large reserve shifts, redemptions, or changes in USDT operations could create transient volatility in stablecoin liquidity and correlated markets. Overall, on balance the news is bullish for gold and for XAUt exposure, with potential secondary effects on market liquidity that traders must watch.