Report: Tether Holds at Least 148 tonnes of Physical Gold, Backing USDT and XAUT
Jefferies estimates Tether holds at least 148 tonnes (~$23bn) of physical gold as of Jan 31, 2026, after buying about 26 tonnes in Q4 2025 and roughly 6 tonnes in January 2026. That accumulation places Tether among the top 30 global gold holders and means its quarterly purchases outpaced most individual central banks, exceeding holdings of several sovereigns (including Australia, UAE and Qatar). The bullion backs both the USDT stablecoin and Tether’s gold token XAUT; XAUT supply rose to roughly 712,000 tokens (~$3.2bn) by end-January, adding around 6 tonnes of backing. Tether CEO Paolo Ardoino has signalled plans to allocate 10–15% of the firm’s ~$20bn investment portfolio to physical gold, implying continued purchases. Jefferies treats public figures as conservative minimums because Tether is privately held and may hold undisclosed bullion; Tether’s Q4 attestation showed roughly $17bn of gold in USDT reserves at end-2025. Implications for traders: sizeable, transparent-seeming gold reserves may bolster perceived backing for USDT and XAUT, potentially increasing demand for gold-backed stablecoins and tokens and supporting price stability for those instruments. Watch for continued Tether gold buying (which could lift spot gold) and any changes in attestations or disclosures that affect market trust.
Bullish
The report that Tether holds at least 148 tonnes of physical gold and is continuing purchases is likely bullish for the tokens it backs—USDT and XAUT—because larger physical reserves increase perceived collateral and may strengthen market confidence. In the short term, confirmations of sizeable gold backing and rising XAUT supply tied to bullion can reduce redemption fear and lower volatility for USDT, supporting demand. For XAUT specifically, evidence of growing physical backing is a direct positive, likely supporting token demand and price stability. Secondary effects include potential upward pressure on spot gold if Tether continues large purchases. Longer term, if Tether follows through on allocating 10–15% of its portfolio to gold, the ongoing accumulation could sustain positive sentiment for gold-backed crypto products. Caveats: the estimates are conservative and Tether is privately held; any unexpected gaps between attestations and actual reserves, or opaque disclosures, would reverse confidence and be bearish. Traders should monitor attestations, on-chain XAUT issuance/redemption flows, Tether disclosures, and large OTC bullion movements to refine short-term positions.