Tether, the issuer of the world’s largest stablecoin, has expanded its holdings in gold, acquiring approximately 27 metric tons during the fourth quarter of 2025. This latest addition is consistent with its purchases from the previous quarter, which were reportedly around 26 tons. The move comes at a time when gold prices are experiencing a notable surge, with an 18% increase year-to-date and a dramatic 64% rise throughout 2025. The precious metal has surpassed significant psychological barriers, crossing $3,000 per ounce in March, $4,000 in October, and reaching $5,000 recently due to robust demand from investors, central banks, and retail buyers, amidst increasing global tensions.
As the price of gold rises, Tether has emerged as a crucial player in the gold market, largely driven by a rapid accumulation of reserves to back its stablecoin offerings. Currently, Tether has around $187 billion worth of USDT tokens in circulation. The Tether XAUT gold token, which represents a substantial $2.7 billion, is fully backed by the metal. Each USDT is designed to maintain a one-to-one peg with the U.S. dollar, with Tether holding equivalent assets, including U.S. Treasury bills, to back its stablecoin.
Paolo Ardoino, Tether’s CEO, remarked on the company’s growing stature in the gold investment sector, stating, “We are operating at a scale that now places the Tether Gold Investment Fund alongside sovereign gold holders, and that carries real responsibility.” In terms of comparison within the gold market, Poland’s central bank has been particularly active, raising its total gold reserves by 35 tons in the fourth quarter, bringing its total to 550 tons.
While Tether has not disclosed the total amount of gold stored in Switzerland for its products, it has indicated that it holds 16.2 tons of gold specifically to back the Tether XAUT token, which constitutes about 60% of the global supply of gold-backed stablecoins. According to the most recent audit from the third quarter regarding USDT reserves, Tether held gold valued at approximately $12.9 billion as of the end of September, which is equivalent to about 104 tons at that time. At the end of September, gold made up only 7% of the reserves backing Tether USDT, while the majority was held in U.S. Treasuries.
