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Investment bank Jefferies has revealed that Tether, the issuer behind the world’s largest stablecoin USDT, has quietly become one of the most influential new buyers in the global gold market. The firm now holds an estimated 116 tons of gold, placing it on par with several small central banks and making it one of the world’s biggest non-sovereign gold holders.
Tether Identified as a Key Driver Behind Gold’s Rally
Jefferies said the recent surge in gold prices cannot be explained by traditional factors alone. Instead, the bank points to Tether as a major new catalyst. Attestation reports and on-chain activity show that Tether has been accumulating significant amounts of gold in recent months, tightening supply and lifting market sentiment.
Gold prices have climbed more than 50% this year, trading near $4,080 per ounce, and analysts believe Tether’s buying pressure is partly responsible for the steep rally.
A Rapid Accumulation of 116 Tons of Gold
According to Jefferies’ latest report, Tether held at least 116 tons of gold by the end of the third quarter. This includes:
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12 tons backing its gold-backed token XAUt, valued at around $1.57 billion
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104 tons supporting its broader reserve portfolio, including backing for USDT, worth roughly $13.67 billion
This scale of accumulation elevates Tether to the status of a major global gold holder, rivaling several smaller national reserves. XAUt itself currently has a market capitalization of around $1.5 billion, based on CoinMarketCap data.
What stands out most is the pace. Jefferies estimates that Tether added 26 tons of gold in the third quarter alone — equal to nearly 2% of global demand for the period. While not large enough to challenge central banks directly, such sustained buying can meaningfully tighten supply and influence short-term market behavior.
How Tether’s Gold Strategy Took Shape
Jefferies first became aware of Tether’s growing gold interest after the firm met with mining and royalty companies during Denver’s industry events in late 2024. Multiple investors shared that Tether was planning to buy around 100 tons of gold over the following year.
CEO Paolo Ardoino later made public comments supporting the idea of gold-backed reserves, adding further weight to the speculation. Sharp spikes in gold’s price at the time also appeared consistent with aggressive accumulation.
Why Tether Is Turning to Gold
Tether has long emphasized the importance of diversifying reserves, especially amid rising scrutiny of stablecoin backing. Gold’s long-term stability and its role as a safe-haven asset make it an attractive addition.
According to Jefferies, Tether aims to keep gold at roughly 7% of its total reserves. With USDT continuing to grow — and Ardoino projecting $15 billion in profit for 2025 — analysts believe Tether could easily continue its gold buying trend.
If Tether allocated even half of its projected annual profits to gold, the company could add nearly 60 tons per year, intensifying its impact on global bullion markets.
A Growing Metals Strategy Beyond Reserves
Jefferies also highlighted Tether’s broader investment strategy within the gold ecosystem. The company has deployed more than $300 million this year into royalty and streaming companies, signaling that its interest goes well beyond holding physical bullion.
This aligns with a broader metals-oriented strategy, supported by recent hires of two senior HSBC metals traders — a move that suggests Tether is not slowing down its gold ambitions but accelerating them.
Uncertainty Around Tether’s Upcoming USAT Stablecoin
One key development noted in the report is Tether’s upcoming GENIUS Act-compliant stablecoin, USAT. Unlike USDT or XAUt, this new stablecoin will not require gold reserves. Analysts believe this leaves some uncertainty about how Tether’s gold purchases may evolve in the long term.
However, as long as USDT continues to expand and remains partially backed by gold, Jefferies expects Tether to remain a significant force in the global gold market.
Could Tether Reshape the Gold Market?
With gold prices hitting record highs and stablecoin demand rising, Tether’s involvement adds a powerful new dimension to the global bullion industry. Although its holdings are still modest compared to major central banks, the speed and consistency of Tether’s buying activity have already begun influencing supply dynamics.
Jefferies concludes that if Tether keeps accumulating gold at this pace — supported by strong stablecoin profits and a continued pro-gold strategy — the company could become one of the most important non-state actors in the global gold market in the coming years.
