Tether’s Gold Reserves Now Rival Those of Nation-States
Tether, best known as the issuer of the USDT stablecoin, has quietly transformed itself into one of the world’s largest private holders of physical gold. In the third quarter of 2025, the company purchased more than 275,000 ounces of bullion, investing around $1.1 billion and pushing its total gold reserves to approximately 116 tons. That level of holdings is now comparable to the official reserves of countries such as South Korea, Hungary and Greece.What began as a diversification move inside a stablecoin reserve portfolio is rapidly turning into something more strategic. Tether is no longer just a key player in crypto markets; it is becoming a systemic actor in global commodities, with enough buying power to influence supply, prices and even central-bank demand dynamics.
How much gold does Tether actually control?
According to the latest disclosures, Tether’s bullion stockpile has reached roughly 116 metric tons. In relative terms, that places the company ahead of many sovereign reserves and within striking distance of mid-sized national gold holders. Analysts note that its Q3 purchase alone represented more than 10% of total central-bank demand for that period, a staggering share for a private entity.At the same time, precious metals now account for about 7% of Tether’s overall reserves. While the majority of its backing is still composed of cash, short-term government securities and other liquid instruments, gold has become a meaningful pillar in its balance-sheet architecture rather than a symbolic add-on.
Why Tether is stacking bullion instead of staying purely in cash and bonds
There are several clear strategic reasons for Tether’s gold accumulation. First, bullion offers a hedge against sovereign and banking risk. As a company that has repeatedly clashed with regulators and faces scrutiny over its reserve practices, Tether is strongly incentivized to hold assets that are difficult to freeze, seize or politically weaponize. Gold stored across multiple jurisdictions fits that requirement far better than deposits concentrated in a small number of banks.Second, gold provides diversification away from interest-rate cycles. During the current high-rate environment, Tether earns significant income on its dollar-denominated holdings, but it is well aware that rates will eventually trend lower. In that scenario, the relative appeal of long-duration bonds falls, while gold historically benefits from lower real yields and looser monetary policy. Building a bullion position now can be seen as front-running that macro shift.
Third, holding physical gold strengthens Tether’s narrative as a resilient, crisis-ready issuer. In emerging markets and unstable economies, users are often more comfortable with collateral they recognize as universally valuable. Being able to point to real gold reserves, not just financial paper, reinforces trust in regions where confidence in traditional institutions is already fragile.
A private balance sheet that looks increasingly like a sovereign one
Taken together, Tether’s reserves now resemble a compact version of a sovereign wealth fund. The mix of cash, treasuries, gold and other assets is closer to what one might expect from a small nation managing its external buffers than from a conventional fintech firm. This is consistent with the scale of Tether’s influence: USDT circulates globally, underpins large parts of offshore dollar liquidity and acts as a de facto unit of account in numerous markets.In practice, that means Tether operates as a parallel monetary institution. Its gold strategy reflects that role. Rather than relying solely on traditional banking rails, it is building a reserve structure that can withstand regulatory shocks, sanctions risk and shifts in global financial architecture. From a macro perspective, the company is positioning itself less like a private issuer and more like a quasi-sovereign actor in both currency and commodity space.
Why Jefferies warns about gold supply and price pressures
Jefferies analysts have raised concerns that Tether’s aggressive purchases could tighten global gold supply and distort price dynamics. When a single private buyer accounts for more than a tenth of central-bank demand in a quarter, other market participants — from official sector institutions to institutional investors — are forced to compete for a shrinking pool of available bullion.The risk is not only higher prices but also increased volatility. As more demand comes from non-traditional actors with flexible, opportunistic strategies, markets can become more sensitive to sudden changes in allocation. If Tether decides to accelerate its buying or, conversely, to liquidate part of its position under stress, the ripple effects could be felt across spot, futures and leasing markets.
What this means for the gold market and central banks
Gold has historically been dominated by central banks, jewelry demand and long-term investors. Tether adds a new kind of participant: a globally active digital-asset company with billions in cash flow and a strong incentive to secure non-confiscatable reserves. Its behavior may encourage other crypto institutions to consider similar moves, especially if bullion continues to perform well during periods of dollar or banking stress.For central banks, the presence of a large private buyer could complicate reserve-management decisions. If private entities begin to hold gold on a scale comparable to mid-sized countries, official-sector accumulation may face tighter supply, and the traditional assumption that gold is primarily a state-controlled asset will be challenged. Tether’s actions therefore have the potential to reshape both perception and practice in reserve management.
A step toward commodity-backed digital money?
Tether’s bullion reserves also raise a deeper question: is the company preparing for a future in which commodity-backed digital money becomes more mainstream? With projects such as gold-pegged tokens and region-specific stablecoins already emerging, holding large gold reserves gives Tether the option to launch new products that blend the benefits of blockchain with the perceived safety of metal-backed assets.Such instruments could appeal to users who distrust fiat currencies but still want price stability, combining the narrative power of “digital gold” with the hard backing of actual bullion. In this scenario, Tether’s 116 tons of gold would not only support its general reserves but could become a foundation for a new generation of tokenized commodities.
Risks and unanswered questions
Despite the strategic logic, Tether’s gold strategy is not without risk. Large physical positions introduce custody, insurance and logistics challenges, as well as questions around transparency. Markets will increasingly expect detailed reporting on where the gold is stored, under what legal arrangements and how quickly it could be mobilized in a crisis.There is also the geopolitical dimension. As regulators and policymakers realize that a private company holds gold reserves comparable to nation-states, scrutiny is likely to intensify. Authorities may worry about systemic influence, market manipulation or the potential for gold-backed digital assets to circumvent capital controls and sanctions.
A parallel financial system in the making
Tether’s gold accumulation is ultimately a symptom of a broader shift. Crypto-native institutions are no longer content to live entirely inside the digital realm; they are extending their reach into real-world assets at strategic scale. By turning its balance sheet into a hybrid of traditional reserves and commodity holdings, Tether is building a buffer against both financial and political uncertainty.Whether this proves to be a visionary hedge or a source of new systemic risk will depend on how markets, regulators and competitors respond. What is already clear is that Tether’s role in the global financial system now extends far beyond stablecoins. With 116 tons of gold on its books, it has entered the domain of actors whose decisions can move not just token prices, but one of the oldest and most important assets in human economic history.
Editorial Team — CoinBotLab