With 116 Tons of Gold, Tether Now Holds Reserves Comparable to a Small Central Bank

Jefferies says stablecoin giant Tether has quickly become one of the most influential new players in the global gold market, contributing meaningfully to the metal’s powerful rally this year.

According to the investment bank, gold’s dramatic rise—now up more than 50% in 2025 and trading near $4,080 per ounce—cannot be fully explained by traditional factors such as central bank accumulation or macro-driven hedging. Instead, Jefferies attributes a notable share of the upward pressure to Tether’s stepped-up bullion purchases, which have tightened near-term supply. Attestation filings and blockchain data indicate the company has been steadily expanding its gold reserves throughout the year.

Jefferies first identified Tether’s interest after holding discussions with miners and royalty companies in Denver last fall. At the time, several investors told the bank they expected Tether to buy roughly 100 tons of gold in 2024. Public comments from CEO Paolo Ardoino about expanding reserves—combined with a sudden $1,000-per-ounce price spike—helped validate those expectations.

In a new estimate, the bank says Tether controlled at least 116 tons of gold by the end of Q3. About 12 tons back the company’s XAUt token (worth roughly $1.57 billion), while around 104 tons support USDT (valued near $13.67 billion). This places Tether among the largest private holders of gold globally, with reserves comparable to those of smaller central banks. XAUt’s market cap stands near $1.5 billion, according to CoinMarketCap.

The speed of Tether’s accumulation has been notable: Jefferies estimates the company added around 26 tons in the third quarter alone, accounting for roughly 2% of global quarterly demand. While modest relative to central bank buying, the scale is sufficient to tighten supply and fuel bullish sentiment during an already strong upward trend.

With USDT still expanding and gold consistently making up roughly 7% of Tether’s backing assets, Jefferies expects the company to continue growing its bullion positions. Ardoino has projected profits of about $15 billion in 2025, and even allocating half of that to gold could translate into annual purchases of nearly 60 tons.

The bank also flagged uncertainty surrounding Tether’s forthcoming GENIUS Act–compliant stablecoin, USAT, which will not require gold reserves. Its launch could alter long-term demand dynamics tied to USDT.

Beyond direct bullion buying, Jefferies notes that Tether is deepening its presence across the wider metals ecosystem. The company has invested more than $300 million in royalty and streaming firms this year, and its recent hiring of two senior metals traders from HSBC suggests its expansion into the gold sector is accelerating rather than slowing.

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