Tether Buys Billions in Gold Monthly, The Strategy Behind Its Growing Bullion Hoard

Tether is no longer just the issuer of the world’s largest stablecoin, it is fast becoming one of the most influential gold accumulators on the planet. 

Over the past year, the company has quietly but decisively ramped up its gold purchases, adding tens of metric tonnes to its reserves. 

This bold move reflects a deeper strategy aimed at reserve diversification, inflation protection, and long-term credibility in an increasingly scrutinised crypto market.

Key Takeaways

• Tether is buying up to $1 billion in gold every month to diversify and strengthen its USDT reserves

• Its gold holdings now rival those of central banks, signalling a shift in how stablecoin issuers manage reserves

• Tokenised gold (XAUT) is central to the strategy, linking physical bullion with blockchain-based ownership

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What is Tether’s Gold Accumulation Strategy?

Tether’s gold buying programme is both substantial and systematic. Throughout 2025, the company acquired gold at a pace that surprised even traditional commodity markets. 

In the third quarter alone, Tether added roughly 26 metric tonnes of gold, followed by another 27 tonnes in Q4. By the end of the year, its total annual purchases reached approximately 116 tonnes.

In value terms, this equates to an estimated $4.4 billion to $8 billion, depending on gold price fluctuations. By September 2025, Tether’s total gold holdings stood at around $12.9 billion, or roughly 104 tonnes. A specific portion, 520,089 troy ounces  is explicitly allocated to backing its tokenised gold product, XAUT.

This scale of accumulation places Tether in a rare category. Few private companies, and even fewer crypto-native firms, purchase gold at volumes comparable to national central banks. As a result, Tether is no longer merely managing digital assets — it is actively shaping physical commodity markets.

Read Also: Tether Hoards 140 Tonnes of Gold, Surpassing Various

Why Tether Is Betting Big on Gold

The motivations behind Tether’s gold strategy are both defensive and opportunistic. At its core, gold offers protection against inflation, currency debasement, and geopolitical uncertainty, risks that have intensified globally. For a stablecoin issuer with a circulating USDT supply of roughly $187 billion, these risks are impossible to ignore.

Tether funds its gold purchases primarily through profits generated from USDT issuance and yields earned in the U.S. 

Treasury holdings. Rather than relying solely on fiat-backed instruments, the company is deliberately broadening its reserve base with tangible, auditable assets.

Gold currently accounts for about 7% of USDT’s backing, but Tether has indicated plans to raise this to between 10% and 15% over time. 

This mirrors a broader trend among global central banks, many of which have increased gold allocations as part of a gradual move away from overdependence on the US dollar.

Importantly, gold also strengthens transparency. Physical bullion stored in recognised vaults is easier to audit and verify than some financial instruments, helping Tether address long-standing concerns around reserve clarity and trust.

Read Also: 7 Potential Gold-Based Tokens in 2026 - Trend of Gold Rise

Storage, Security, and the XAUT Connection

All of Tether’s gold is stored in high-security Swiss vaults that meet London Good Delivery standards, the global benchmark for large-scale gold storage. Some reports even describe these facilities as heavily fortified, likened to a “James Bond bunker”, underscoring the seriousness with which Tether treats asset security.

This physical gold directly underpins XAUT, Tether’s tokenised gold product. Each XAUT token represents ownership of a specific quantity of physical gold held in reserve. 

In 2025, XAUT experienced rapid growth, expanding from approximately $1.3 billion in market value to more than $4 billion.

Today, XAUT commands around 60% of the gold-backed stablecoin market, making it the clear leader in this niche. The product appeals to investors seeking exposure to gold without the logistical challenges of physical storage, while still benefiting from blockchain-based transferability.

By tightly linking physical bullion with digital tokens, Tether has created a hybrid model that bridges traditional finance and decentralised assets.

Market Impact and Industry Implications

Tether’s aggressive buying has not gone unnoticed. In 2025, its gold acquisition pace outstripped that of many national central banks, contributing to tighter supply conditions in the bullion market. 

This has positioned Tether as a unique hybrid entity, part stablecoin issuer, part asset manager, and part quasi-sovereign gold holder.

CEO Paolo Ardoino has acknowledged that holding such significant gold reserves carries responsibilities similar to those faced by state-level institutions. 

This statement reflects a broader reality: as stablecoins scale, their reserve strategies increasingly resemble those of national monetary authorities.

For the wider crypto industry, Tether’s approach sets a precedent. It suggests that future stablecoin resilience may depend not just on fiat backing, but on diversified portfolios that include real-world assets with long-term value.

Read Also: Tether Eyes $500B Valuation, Bigger Than Warren Buffett?

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Conclusion

Tether’s decision to buy billions of dollars’ worth of gold each month marks a turning point for the stablecoin sector. What began as a tool for digital liquidity has evolved into a sophisticated reserve strategy rivaling those of central banks. 

By combining physical gold, tokenisation through XAUT, and disciplined portfolio allocation, Tether is redefining what credibility and stability mean in the crypto economy. Whether this model becomes the industry standard remains to be seen, but its influence is already unmistakable.

FAQ

What is XAUT by Tether?

XAUT is a tokenised gold product where each token represents ownership of physical gold stored in Swiss vaults.

How much gold does Tether currently hold?

Tether holds over 100 metric tonnes of gold, valued at more than $12 billion based on recent estimates.

Why is Tether investing heavily in gold?

The strategy helps hedge against inflation, diversify reserves, improve transparency, and reduce reliance on fiat currencies.

Where is Tether’s gold stored?

All gold reserves are stored in high-security Swiss vaults that meet London Good Delivery standards.

Does Tether’s gold strategy affect the wider market?

Yes, its large-scale purchases have tightened gold supply and positioned Tether as a major non-sovereign gold holder.

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