Tether Becomes the World's Largest Gold Buyer, Surpassing Many Central Banks

Source: TokocryptoBlog
Original Title: Not a Country, Tether Becomes the World’s Largest Gold Buyer!
Original Link: https://news.tokocrypto.com/%e2%81%a0bukan-negera-tether-jadi-pemborong-emas-terbanyak-di-dunia/

Introduction

Tether, the crypto company that issues stablecoins such as USDT pegged to the USD and XAUt pegged to gold, according to data from investment bank Jefferies, bought 26 tons of gold in Q3, more than any central bank during the same period.

What is Tether and Why is it Buying So Much Gold?

Founded in 2014, Tether Limited is a leading crypto company that issues the popular stablecoin USDT, a stablecoin designed to maintain a 1:1 ratio with the US dollar, providing liquidity in crypto trading. Now, USDT’s market capitalization has exceeded $184 billion.

Tether often comes under scrutiny regarding the transparency of its reserves. In response, the company has diversified its assets beyond cash and government bonds, including Bitcoin and, most notably, now physical gold. This shift started picking up around 2021, along with the boom in tokenized assets.

As of September 2025, Tether’s gold reserves reached 116 tons. These reserves are valued at around $13 billion, covering about 104 tons backing USDT and 12 tons backing XAUt, Tether’s tokenized gold product.

Tether’s Massive Gold Purchases in Q3 2025

Amid rising gold prices, Tether has been busy buying gold as part of the reserves backing its stablecoins. Tether’s purchase of 26 tons of gold in Q3 was even larger than the gold purchases made by many countries.

For context, Kazakhstan bought 18 tons, Brazil 15 tons, Turkey 7 tons, and Iraq 6 tons during the same period. According to investment bank Jefferies, Tether accounted for about 12% of known central bank gold purchases in that quarter and 14% in Q2.

This makes Tether not only a buyer but also a dominant independent holder of physical gold, on par with the national reserves of South Korea ( around 104 tons, according to some estimates), Hungary, and Greece.

However, unlike sovereign entities that hoard gold for monetary stability, Tether’s purchases are driven by commercial demand, such as the surging circulation of USDT ( from $174 billion to $184 billion in Q3), growing interest in XAUt amid economic volatility, and the increasing adoption of crypto.

Reasons Behind Tether’s Gold Buying Spree

Factors such as fiscal dominance, rising public debt, loose monetary policy, and eroding confidence in fiat currencies drive this decision. Investors, wary of inflation and geopolitical tensions, have caused many entities to flock to safe-haven assets like gold.

Tether is also increasingly integrating gold into its reserves, which now make up around 7% of its total assets ( around $13 billion).

Controversy Surrounding Tether’s Gold Purchases

S&P Global downgraded Tether’s stablecoin rating from “constrained” to “weak,” which is its lowest rating. This downgrade was due to the increasing proportion of risky asset reserves held by Tether, such as Bitcoin at 5.6%, gold, secured loans, and corporate credit.

Tether CEO Paolo Ardoino responded by rejecting traditional financial criticism and emphasizing the company’s resilience. Paolo also believes that legacy financial institutions have viewed Tether as a disruptor.

On the other hand, new US regulations passed in 2025 require permitted stablecoins to be backed 1:1 by liquid assets such as US dollars or short-term US Treasury bills, not by volatile or hard-to-liquidate assets like gold and Bitcoin.

Tether responded by launching USAT, a regulation-compliant token without gold, allowing USDT to continue operating outside of strict regulations.