Why Tether Is Buying So Much Gold — And What It Means?

If you’ve seen headlines about Tether buying more gold than many central banks, you’re not imagining things. Recent reporting says the world’s largest stablecoin issuer added about 26 metric tons of gold in Q3 2025, bringing total holdings to around 116 tons—a stash big enough to sit among the top national holders if Tether were a country. The motivation? Diversification, optics, and a bet on hard assets—plus a growing tokenized-gold business alongside USDT.

This guide breaks down what changed, how it stacks up against central bank buying, how USDT reserves and XAUt (Tether Gold) fit in, and the real risks to keep in view.

What happened and why it matters

According to Cointelegraph’s roundup, Tether purchased ~26t of gold in Q3 2025 and reported ~116t by quarter-end. The article also cites independent reserve attestations showing gold and precious metals around 7% of consolidated reserves as of Sept. 30, 2025. That 7% bucket includes XAUt backing and additional bullion held as part of broader reserves.

On the demand backdrop, central banks themselves were heavy buyers: the World Gold Council (WGC) estimates net 220t of official-sector purchases in Q3, up 28% from Q2, led by Kazakhstan, Brazil, and Turkey. That gives context: in a quarter when official buyers were already active, a private stablecoin issuer still made outsized waves.

Financial press has also chronicled Tether’s pivot deeper into the gold ecosystem—both as an investor and reserve holder—reporting talks across the mining supply chain and a growing bullion pile (with figures like ~$8.7B of gold stored in Zurich reported earlier in 2025). Analysts at Jefferies, cited in the Financial Times, have framed Tether as a newly significant “gold whale.”

Why this matters: Stablecoins are a core liquidity layer for crypto. The composition of USDT reserves—traditionally heavy in U.S. Treasuries—now meaningfully includes gold and bitcoin as diversification. That’s a notable shift in risk profile and narrative.

How XAUt and USDT fit together

• USDT: Dollar-pegged stablecoin. Reserves are largely Treasuries, plus other assets. Tether reports quarterly attestations and says assets exceed liabilities with a multi-billion “excess reserve” buffer. As of Sept. 30, 2025, the company asserted $181.2B in reserves backing tokens in circulation, with overall equity approaching $30B.
• XAUt (Tether Gold): A token representing one fine troy ounce of gold, backed by LBMA good-delivery bars, vaulted in Switzerland. Company attestations and third-party assurance reports describe the bar lists, custody, and methodology. As of Q3 2025, XAUt was backed by ~375,000 ounces (~11.6t) of physical gold.

Key nuance: The ~7% “gold and precious metals” share of reserves includes XAUt backing and extra bullion that is part of Tether’s broader reserve strategy. In other words, not all of Tether’s gold is “just for XAUt”; a large chunk is a corporate reserve allocation that indirectly supports confidence in USDT (via diversification).

Is Tether really buying more gold than central banks?

“More than many central banks” is a fair summary of Q3 2025. The WGC puts total official-sector net purchases at ~220t for the quarter, with major buyers in the high single- to low double-digit tons. Tether’s ~26t in a single quarter therefore exceeded what many mid-sized central banks reported, even amid a record-price environment.

Some coverage goes further, citing sell-side analysis that Tether ranked among the largest single buyers of the quarter and that cumulative holdings (~116t) place it in the neighborhood of notable national reserves. Those are press and analyst characterizations, but they align with the scale reported.

Why would a stablecoin issuer buy so much gold?

1) Diversification and optics.
USDT is massive. Management has argued that adding real assets like gold and bitcoin strengthens resilience and signals conservative instincts to users outside crypto. Tether’s updates emphasize profit-funded purchases, excess reserves, and a broader investment arm kept outside the backing for issued tokens.

2) A bet on tokenized commodities.
Tether doesn’t just hold gold; it issues XAUt and has built tokenization rails (Hadron, Alloy). If tokenized gold demand grows, having supply chain expertise and bullion relationships can be strategic.

3) Reading the macro room.
The WGC shows record gold prices and robust investment + central bank demand in 2025. If you believe geopolitical/monetary risk remains elevated, gold becomes a logical hedge within a giant reserve base tied to a global payments token.

The other side: risks and watchdog questions

Not everyone is applauding. In late November, S&P Global Ratings downgraded its assessment of Tether’s reserve quality, citing a rising share of higher-risk assets (corporates, bitcoin, precious metals, and secured loans)—estimated around 24% at end-Q3, up from 17% a year earlier. Financial press coverage warned that if risk assets fall, collateral coverage could tighten, raising peg questions. Tether countered that profits, buffers, and attestations demonstrate strength.

How it compares to central bank gold buying

The WGC’s Q3 2025 report shows central banks bought ~220t net in the quarter—evidence that official institutions continue to diversify reserves despite record prices. Seeing a private crypto company accumulate at comparable quarterly pace blurs lines between public and private balance-sheet behaviors and underscores how stablecoins have grown into quasi-financial utilities.

For crypto markets, this has three implications:

1. Narrative crossover: Gold narratives (inflation hedge, sanctions evasion, FX diversification) now sit next to stablecoin narratives (24/7 settlement, cross-border remittances).
2. Tokenization tailwind: If tokenized commodities gain traction, XAUt and rivals could expand beyond niche use.
3. Policy attention: When a private issuer’s reserve actions move a sovereign-heavy market, expect regulators and ratings firms to keep asking tougher questions.

A quick way to verify the claim set

• Quarterly central bank buying: Check WGC Gold Demand Trends (Q3 2025); it lists the ~220t figure and top buyers (Kazakhstan, Brazil, Turkey, Guatemala, etc.).
• Tether’s gold/XAUt details: Review Tether’s assurance reports and XAUt attestation PDFs (bar lists, Swiss vaults, LBMA good-delivery).
• XAUt outstanding & backing: See CoinDesk coverage of ~11.6t backing as of Sept. 30.
• Reserve mix, profits, buffers: Read Tether’s Sept. 30, 2025 attestation update about reserves, liabilities, and equity.
• S&P / analyst concerns: See FT and other financial press on the downgraded assessment of reserve quality.

The Conclusion

Tether’s decision to buy tens of tons of gold—at a pace that outstrips many central banks—reflects a strategic turn: diversify USDT reserves, deepen a tokenized-gold franchise, and hedge macro risk. The move aligns with a world where non-state actors compete with sovereigns for safe-haven assets and where stablecoins behave more like mini financial institutions than startup tokens.