Tether accumulated 116 metric tonnes of gold at the close of the third quarter of 2025, an amount that Jefferies says is on par with official reserves of countries such as South Korea and Hungary. This scale reflects a diversification strategy that is already shaping price behavior and liquidity in the gold market.
Tether’s Reserve Strategy Expands Beyond Traditional Stablecoin Collateral
Jefferies attributes ownership of 116 metric tonnes of physical gold to Tether, positioning the firm among the largest non-sovereign bullion holders. In Q3 2025, its purchases accounted for nearly 2% of global gold demand and around 12% of central bank purchases, tightening supply and helping drive gold to record highs between $4,050–$4,200 per ounce.
Tether’s approach merges physical accumulation with tokenization via XAU₮ (also communicated as XAUT), a gold-backed token supported by approximately 12 tonnes of metal and capitalized above $2,000M, with each token corresponding to one troy ounce held in Swiss vaults.
The company has allocated more than $300M to positions in metal producers and integrated traders from traditional institutions, including Vincent Domien, formerly global head of metals trading at HSBC. This integration increases upward pressure and reduces spot liquidity in certain market segments, while simultaneously expanding access to tokenized gold for collateralization and hedging in DeFi and OTC markets.
The expansion introduces regulatory pressure and risk exposure. S&P Global Ratings downgraded USDT’s stability to “weak” due to higher-risk reserves like gold and Bitcoin, while the U.S. GENIUS Act would require stablecoins to rely on liquid sovereign-grade assets—excluding gold as compliant backing.
From a macrofinancial perspective, Jefferies connects part of Tether’s profitability to gold appreciation, with year-to-date earnings near $10,000M and projections of up to $15,000M for the fiscal year, including $3,000–$4,000M attributed to metal performance.
Tether’s 116-tonne reserve establishes a new level of influence over both gold and the architecture of stablecoin reserve models.