Tether, the company behind the world's leading stablecoin, has become the largest private gold holder worldwide, overtaking central banks in countries like South Korea, Hungary, and Greece.
As reported by Bloomberg and Jefferies
, Tether's gold holdings have now surpassed 116 tons, with a value exceeding $12.9 billion as of September 2025. This marks a significant transformation in its reserve management approach and alters how stablecoin reliability is viewed. The rapid increase, fueled by substantial purchases in the third quarter of 2025—including an additional 26 tons—has established
Tether
as a major force in the gold sector,
putting it on par with medium-sized national reserves
.
The shift towards gold signals a broader diversification of Tether's reserve assets, with gold now making up 7% of its total holdings, alongside
Bitcoin
and secured lending. Originally intended as a safeguard against global economic volatility and inflation, this strategy accelerated in 2025 as gold prices climbed more than 50% year-to-date.
Jefferies analysts point out
that Tether's gold acquisitions represented 2% of worldwide demand in Q3, tightening the market and affecting investor sentiment.
The company's approach also includes deeper involvement in the gold industry, such as holding a 37.8% share in Canadian gold royalty company Elemental Altus Royalties, with
intentions to increase its stake to as much as 51.8%
.
Nevertheless, this expansion has drawn attention from critics. S&P Global Ratings recently lowered Tether's USDT stability rating from "constrained" to "weak," citing increased exposure to volatile assets like Bitcoin (5.6% of reserves) and gold. The agency cautioned that a drop in Bitcoin or other high-risk assets could weaken reserve coverage, potentially leaving USDT insufficiently backed
according to S&P Global Ratings
. Tether's reserves now consist of 7.13% gold and 5.44% Bitcoin, while cash and equivalents make up 77.23%, indicating a move away from its previous focus on cash and Treasuries
as outlined in financial disclosures
.
The impact goes beyond Tether itself. By becoming a leading gold purchaser, the company has affected both the cryptocurrency and traditional financial markets. Gold's reputation as a safe-haven asset is now linked with digital finance, especially as tokenized gold (XAU₮) gains popularity. Jefferies projects Tether could buy another 100 tons in 2025,
leveraging its projected $15 billion annual profits
. At the same time, regulators are challenged to align Tether's gold-backed reserves with rules such as the U.S. GENIUS Act, which
requires stablecoins to be fully backed by "high-quality liquid assets"
.
Looking forward, Tether is pursuing a dual strategy—growing its gold and Bitcoin reserves while also preparing to launch a U.S.-compliant stablecoin (USAT) backed by Treasuries—to address regulatory demands and maintain its market lead. While rivals may attempt similar moves, Tether's scale and infrastructure provide a significant head start. For investors, this development
highlights the evolution of the crypto industry
where tangible assets support digital currencies, though risks like market dominance and regulatory ambiguity persist.
