Tether Emerges as the Largest Private Holder of Gold Outside Central Banks

Tether has quietly built one of the world’s largest private gold portfolios, according to new analysis from Jefferies.

Indeed, the scale of its holdings now places the stablecoin issuer ahead of all non-state buyers and close to the reserves of several sovereign central banks.

Tether’s Gold Stockpile Now Rivals National Reserves

In a recent research note, Jefferies stated that Tether controls 116 tons of physical gold. Notably, this level is comparable to the holdings of South Korea, Hungary, and Greece, according to the bank.

The investment bank noted that no private buyer holds more gold than Tether. Consequently, the firm is now positioned just behind government monetary authorities in global rankings.

This rapid climb has drawn wider attention across financial markets, where Tether’s activity is no longer viewed as a niche development within the digital asset sector.

Large Purchases Influence Market Demand

According to Jefferies, Tether’s buying represented about 2% of global gold demand last quarter. It also accounted for nearly 12% of central-bank purchases during the same period.

The bank noted that the company’s rapid accumulation has likely tightened short-term supply. In turn, this appears to have strengthened sentiment and encouraged further speculative interest in gold.

As of press time, Gold trades at $4,163 per ounce on the FX market, up 2.43% over the past week.

Investors cited by Jefferies expect Tether to purchase another 100 tons of gold in 2025. The company is on track to deliver around $15 billion in profit this year, giving it ample capacity to continue buying.

Strategic Expansion Across the Gold Industry

Tether’s interest in gold extends beyond holding bullion. This year, the company reportedly invested over $300 million in precious-metal producers.

One major move came in June, when Tether acquired a 32% stake in Elemental Altus Royalties, a Canadian royalty firm. Meanwhile, The Financial Times reported that Tether is also exploring other segments of the gold supply chain, including mining, refining, trading, and royalty operations.

Tokenized Gold Becomes a Major Focus

Alongside physical holdings, Tether is expanding its gold-backed token, Tether Gold (XAUt). The token is supported by bullion stored in Switzerland.

Blockchain data show that the supply of XAUt has doubled in six months. Specifically, since August, Tether has added 275,000 ounces, worth $1.1 billion, to support new token issuance.

Jefferies said Tether is betting on wider adoption of tokenized gold. The company argues that tokenization avoids the drawbacks of physical storage, futures costs, and ETF fees.

Growing Resemblance to Central-Bank Operations

Tether’s expanding footprint is increasingly reflected in how it manages its reserves and daily operations. The company mints and redeems USDT for verified customers, effectively adjusting supply in a manner reminiscent of central bank liquidity management.

Its reserves include short-term US Treasurys, gold, and Bitcoin. By earning interest on Treasurys while issuing a non-yielding token, Tether’s model mirrors how central banks generate income.

The firm also employs policy-style tools, such as freezing addresses for law enforcement and discontinuing support for blockchains deemed too risky, to maintain stability.

Ultimately, these practices have made Tether’s ecosystem look increasingly like a private-sector counterpart to a central bank, underscoring its growing influence across both digital and traditional financial markets.