Why Tether is buying more gold than many central banks and what it signals
Tether, the issuer of the popular stablecoin USDT, has made headlines by acquiring a substantial amount of gold in the third quarter of 2025. This move has positioned the company as a significant player in the gold market, surpassing many national banks in terms of gold purchases.
Tether's gold acquisition surpasses central banks in Q3 2025
In Q3 2025, Tether added 26 metric tons of gold to its reserves. Analysts from Jefferies have reported that this figure makes Tether the largest gold buyer in that quarter, outpacing the combined purchases of all central banks that reported their gold holdings.
By the end of September 2025, Tether's total gold holdings reached approximately 116 tons. If ranked among countries according to the International Monetary Fund's official gold reserves, Tether would find itself among the top 30 holders globally, ahead of several nations including Greece and Qatar.
Significant rise in non-sovereign gold demand
This trend highlights a broader shift in the gold market, where large private entities, such as stablecoin issuers, sovereign wealth funds, and multinational corporations, are becoming prominent players. The World Gold Council has noted a rising demand for gold from non-sovereign entities, marking a departure from the traditional dominance of central banks.
Tether's CEO, Paolo Ardoino, stated that Tether intends to continue investing its profits into safe assets like gold, Bitcoin, and real estate. The strategy aims to strengthen the company's long-term resilience and diversify its asset base.
Tether's gold holdings verified through independent attestations
Tether ensures transparency regarding its reserves through independent attestations conducted by reputable accounting firms. As of September 30, 2025, gold and precious metals accounted for roughly 7% of Tether's total consolidated reserves.
This percentage includes gold-backed USDT and Tether Gold (XAUT), the company’s tokenized gold product. XAUT has a market value of around $1.6 billion, which corresponds to less than 12 tons of gold. Notably, more than 100 tons of the reported gold is part of Tether's broader corporate reserves and investments rather than being tied to XAUT.
Contrasting Tether's and central banks' gold buying strategies
According to the World Gold Council's report on gold demand trends for Q3 2025, central banks worldwide added a net total of 220 tons of gold during the same quarter, representing a 28% increase from the previous quarter.
Countries like Kazakhstan and Brazil made notable purchases, with Kazakhstan increasing its reserves by 18 tons and Brazil adding 15 tons. However, the motivations for these purchases differ significantly between central banks and Tether.
Central banks typically acquire gold as part of their national monetary policies, whereas Tether's purchases are driven by corporate strategies aimed at collateralizing its stablecoin and diversifying its asset portfolio.
The rise of non-state entities in the gold market
Historically, demand for gold has been primarily driven by central banks, the jewelry sector, and commodity investors. However, in recent years, an increasing share of gold purchases has come from private institutions, sovereign wealth funds, and stablecoin issuers like Tether.
This shift in demand can be attributed to geopolitical uncertainties and fluctuations in currency values. As a result, stablecoin issuers are now acquiring gold in volumes that were once characteristic of medium-sized national central banks.
The emergence of non-state buyers is reshaping global gold demand patterns and highlights the evolving landscape of the gold market, where private players are gaining prominence.
It is important to clarify what Tether's gold accumulation does not signify. It does not indicate any liquidity issues or insolvency risks, as independent attestations confirm the balance between Tether's assets and liabilities. Furthermore, Tether's gold purchases do not predict future market movements for gold prices.
In summary, Tether's aggressive gold-buying strategy marks a significant development in the financial landscape, illustrating how private entities are increasingly competing with traditional central banks in the quest for gold reserves.
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