- Tether’s gold reserves reached 116 tons, matching holdings of some smaller central banks.
- Jefferies links Tether’s 26-ton Q3 buying to tighter supply and stronger gold prices.
- Over $300M in mining investments signals Tether’s deeper push into the broader gold ecosystem.
Tether’s continued expansion into physical gold markets is drawing attention following new assessments that indicated its bullion reserves had reached approximately 116 tons by the end of the third quarter.
Analysts tracking the stablecoin issuer’s activity say the accumulation places the company on a footing comparable to several smaller central banks at a time when gold prices have surged and supply conditions remain tight.
Analysts Trace Supply Pressure to Accelerated Quarterly Buying
Research from investment bank Jefferies estimates that Tether added roughly 26 tons of gold during the third quarter alone, a pace that amounted to around 2% of global demand. The firm’s report indicates that approximately 12 tons of support Tether’s XAUt token, while roughly 104 tons are held within USDT reserves.
The bank’s analysts noted that the activity likely contributed to near-term supply tightening during a period when gold rose, pointing to the timing of Tether’s purchases and earlier signals from meetings the company held with miners and royalty groups in Denver last fall.
Tether Deepens Gold Investments Beyond Reserve Holdings
Alongside the reserve buildup, Tether has increased its exposure to the gold market through investments in royalty and streaming companies. More than $300 million has been allocated to these ventures this year, according to the analysis. Additional developments include mining concessions and new hires from HSBC’s metals desk, indicating a broader expansion into physical market operations.
Royal Gold Inc.’s recent sale of shares in mining firm Versamet to Tether provided another data point in this shift. These transactions, analysts claimed, support the view that the stablecoin issuer is building a more integrated presence across gold-related assets.
Outlook Linked to Reserve Composition and Future Profit Deployment
Jefferies projects that Tether may maintain its gold exposure as USDT supply grows and bullion continues to represent roughly 7% of reserves. With CEO Paolo Ardoino forecasting $15 billion in profit for 2025, the bank calculated that allocating half of that amount to bullion could result in nearly 60 additional tons purchased annually.
The report added that Tether’s planned GENIUS Act-compliant stablecoin, USAT, will not require gold holdings, leaving its long-term effect on USDT-linked demand yet to be determined.
Related: Tether Hires HSBC Gold Chiefs To Deepen $12B Bullion Hoard And Broaden $180B Reserves
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