Tether accounted for almost 2% of global gold demand last quarter, with Jefferies noting that its aggressive buying may be influencing short-term market sentiment.
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Stablecoin issuer Tether holds 116 tons of physical gold, placing it on par with central banks such as those in South Korea, Hungary and Greece.
Tether is “the largest holder of gold outside central banks,” Jefferies wrote in a recent analysis, per a by the Financial Times. The investment bank added that Tether’s growing appetite for gold may be playing a larger role in the metal’s recent surge than previously assumed.
According to Jefferies, Tether’s gold purchases last quarter accounted for nearly 2% of total global gold demand and almost 12% of central bank purchases. The company said that Tether’s aggressive accumulation over the past two months “is likely to have tightened supply in the short term and influenced sentiment,” potentially driving speculative inflows into gold markets.
Investors cited by Jefferies said Tether aims to acquire another 100 tons of gold in 2025. With the company reportedly on track for $15 billion in profit this year, the target appears well within reach, according to the report.
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Tether doubles down on gold strategy
Tether has also spent more than $300 million this year buying stakes in precious-metal producers. In June, it in Canada’s public gold royalty firm Elemental Altus Royalties.
In September, the FT reported that Tether is the gold supply chain, including mining, refining, trading and royalty companies, as part of a broader push to diversify its reserves.
Tether also issues Tether Gold (XAUt), its gold-backed token launched in 2020 and advertised as being supported by bullion stored in a Swiss vault. Blockchain data shows XAUt issuance has doubled over the past six months, with Tether adding 275,000 ounces (about $1.1 billion) since August.
Jefferies said Tether is betting that will finally find traction. Physical gold is cumbersome for retail investors, futures carry roll costs and gold ETFs charge relatively high fees. Tether argues that tokenization solves these frictions.
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Tether increasingly resembles a central bank
As Cointelegraph reported, Tether’s day-to-day operations mirror several core functions traditionally . It mints and redeems USDt () directly for verified customers, effectively expanding or contracting supply through its primary market pipeline.
It also manages a large reserve portfolio dominated by short-duration US Treasurys, along with gold and Bitcoin (). The company generates central bank–like income by earning interest on those Treasurys while issuing a non-interest-bearing token.
Beyond that, Tether employs policy-style tools, such as at the request of law enforcement and phasing out blockchains to reduce risk.
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