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Tether Holdings Limited, which issues the USDT stablecoin, has quietly built up one of the world’s largest private gold reserves, with almost 116 metric tons by the end of Q3 2025.
According to a Jefferies research from November 2025 that was carried by the Financial Times and Bloomberg, this news puts Tether in the running to be the biggest non-sovereign gold owner, with reserves that rival those of central banks in South Korea (104 tons), Hungary (94 tons), and Greece (114 tons). Tether’s hoard is worth roughly $12.9 billion, which is about 7% of its $180 billion reserves. This is a strategic move away from U.S. Treasuries and Bitcoin.
Jefferies said, the company’s aggressive purchase of 26 tons in Q3, which was more than any central bank, added almost 2% to global quarterly demand and 12% to central bank purchases. This has led to suspicion that Tether’s actions are compressing supply and promoting gold’s 50% rise in 2025. As stablecoin volumes reach $46 trillion a year, this change not only makes USDT more trustworthy, but it also solidifies Tether’s growth into a “borderless central bank,” combining the flexibility of crypto with the safety of traditional assets.
Tether’s plan for collecting gold
Tether’s gold reserves have grown from $5.3 billion at the end of 2024 to $12.9 billion by September 2025, a rise of $7.6 billion in nine months, thanks to regular weekly purchases of more than one ton. Jefferies says that the 26 tons added in the third quarter alone was more than all the central banks bought that quarter. Tether now holds a total of 116 tons, with about 12 tons backing its tokenized gold product XAUt ($2.1 billion market cap) and 104 tons in broader reserves backing USDT.
Paolo Ardoino, the CEO, has called gold “natural Bitcoin” and sees it as a way to protect against fiat dangers. He thinks that if half of the predicted $15 billion in revenues in 2025 are used to buy gold, it could add 60 tons a year. Tether’s vertical integration goes beyond only holding: Investing more than $300 million in mining royalties (such a 32% investment in Elemental Altus Royalties) and supply chain players shows a “gold ecosystem” play. Since August, the amount of XAUt issued has doubled, adding 275,000 ounces ($1.1 billion). This is because tokenized gold is easier to trade around the clock without storage fees, unlike actual bullion or ETFs, which have management charges.
This plan fits with Tether’s $180 billion USDT circulation, where gold yields (like JGB returns) add to Treasury income. Ardoino said in September, “As the world gets darker, Tether puts its profits into safe assets like Bitcoin, gold, and land.”
Competing with Central Banks: Size and Market Power
Tether’s 116 tons put it in the middle of the pack of sovereign holders. It’s ahead of Qatar (102 tons) and Australia (80 tons), but behind Poland (359 tons). Jefferies points out that its purchases in the third quarter made up 2% of global demand. This might make supply tighter in the medium term and lead to speculative inflows as gold’s price rises 50% in 2025 to $3,500 or more. Central banks have collected more than 1,000 tons a year since 2023, but Tether’s pace of 26 tons in one quarter was even faster than Turkey’s rapid buildup.
This spike that isn’t from a sovereign country goes against the stories: Countries like Russia (2,300 tons) are moving away from dollars, and Tether’s private stockpile, which is bigger than many countries, makes crypto more important on a global scale. The $2.1 billion cap on XAUt (which doubled in six months) shows that tokenized gold is real. Cross-chain compatibility on Ethereum and TON makes it easier to use.
Investing in the Gold Supply Chain in a Smart Way
Tether’s goals go even higher: they have invested more than $300 million in royalty firms like Elemental Altus (32% share) and streaming companies, which gives them exposure without the hazards of mining. In September, FT reports on in-depth investigations into refining and trading, which led to the creation of a vertically integrated gold play. This is like investing in Bitcoin, which has $9.9 billion in BTC holdings, except it uses gold’s stability to back USDT reserves.
Ardoino’s idea of a “borderless central bank” is to let people mint and redeem USDT directly, manage reserves that earn interest, and freeze addresses for compliance, just like a real central bank does. Adding gold protects against changes in U.S. regulations, including the GENIUS Act, which makes it illegal for compliant stablecoins (which led to Tether’s USAT pivot).
What this means for stablecoins and the gold market
Tether’s stockpile makes USDT more trustworthy, even though there are $183 billion in circulation. However, this goes against the GENIUS Act, which says that gold can’t be backed by the U.S. because S&P gave it a “weak” peg rating. Profits (almost $10 billion in nine months) help the company diversify, but critics like Arthur Hayes say that a 30% decline in assets could put a pressure on reserves.
Tether’s demand for gold, which might be as much as 100 tons in 2025, makes the supply tighter, which helps prices stay high as central banks buy more over 1,000 tons a year. Tokenized gold like XAUt gets around problems in retail: No storage, shared ownership, and trading around the clock—these are all ways to capture ETF outflows.
Conclusion
Tether’s 116-ton gold holdings, the largest in the world that aren’t owned by a government, make it a competitor to central banks. Its $12.9 billion stockpile supports USDT/XAUt and affects the 50% rise in bullion prices. It’s a “borderless central bank” bet that protects against fiat risks while the GENIUS Act limits them. It has $300 million in mining investments and $15 billion in predicted earnings. For stablecoins, it’s trust; for gold, it’s supply pressure. Ardoino wants 100 additional tons, and Tether changes its reserves. Watch out for tokenized domination in 2026.
