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The stablecoin issuer Tether (USDT) now holds enough physical gold to rival the holdings of small central banks. However, the scale of these purchases has triggered new questions about the extent of private crypto companies’ influence in global markets.
It is also reframing debates about the role of stablecoins in global finance and sparking speculation about a new era of “stablecoin sovereignty.”
Tether has paused nearly all Bitcoin purchases for several weeks, and is now the largest buyer of Gold in the world.
They know the days of manipulating BTC are coming to an end, and trying to transfer their stolen wealth to an actual store or value before it all blows up. pic.twitter.com/ZyZN0peQsf
— Jacob King (@JacobKinge) November 26, 2025
According to a November 20, 2025, report by investment bank Jefferies, Tether controlled approximately 116 tonnes of gold at the end of the third quarter this year. This figure includes roughly 12 tonnes backing its gold-token (XAUt) and 104 tonnes supporting its dollar-pegged stablecoin (USDT).
Jefferies estimates that Tether’s Q3 gold purchases, amounting to nearly 26 tons, represented roughly 2% of global gold demand and around 12% of central-bank purchases in that quarter.
Tether’s shift toward metals is not sudden and has been building throughout the year. A Bloomberg report on July 8, 2025, described an earlier vault audit suggesting that the company already held close to 80 tons of gold, stored in a high-security Swiss facility.
This trend of Tether’s gold accumulation alters the conventional architecture of stablecoin reserves. Historically, stablecoins have been backed by short-term U.S. Treasuries, cash, or cash equivalents. However, Tether’s move into physical gold marks a departure from that formula, and the amount involved is large enough to draw attention from beyond the crypto sector.
By consistently growing its gold allocation, Tether is signalling confidence in physical assets amid fiat weakness, rising inflation, and growing macroeconomic uncertainty. Since gold has a long track record as a store of value, this could enhance Tether’s reserve stability, particularly in the eyes of large-volume or institutional users.
On a macro scale, Tether’s purchases may be reshaping supply dynamics in the global gold market. Jefferies said that the firm’s bulk buying tightened supply in the short term and influenced sentiment, which, in turn, contributed to the 50%+ spike in gold prices in 2025.
Tether’s ambitions extend beyond stockpiling physical gold bars. The firm has reportedly invested over $300 million into gold-royalty and streaming companies, too, gaining exposure to mining cash flows.
It has also hired metals-trading veterans from traditional finance, highlighting a strategic push into the commodities sector.
Tether’s move towards gold suggests stablecoins can now assert a form of “sovereignty” once exclusive to fiat-issuing countries. By backing tokens, specifically USDT, with a real, globally recognized asset like gold, Tether is creating a reserve structure that differs from the usual reliance on short-term US debt.
This will also change how users and analysts evaluate stablecoin strength. Gold reserves and exposure to mining revenues can react differently to periods of market volatility, offering an alternative to Treasury-heavy portfolios.
It raises some serious questions for regulators, too. When a private stablecoin issuer holds gold on a scale comparable to smaller central banks, it blurs the line between corporate reserves and national-level asset management. If more issuers start backing tokens with commodities or other real assets, it could reshape how value moves across the globe and who ultimately influences those flows.
Tether’s planned US-compliant stablecoin ‘USAT’ will not include gold, but the company’s broader reserve strategy may still set a precedent for others in the sector.
It’s not yet clear if Tether will continue accumulating gold, or whether regulators will step in as stablecoins move further away from traditional fiat-backed models.
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