Tether’s Move to Acquire Gold as a Shield Against Dollar Fluctuations Transforms the International Bullion Market

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Tether’s Move to Acquire Gold as a Shield Against Dollar Fluctuations Transforms the International Bullion Market

Bitget-RWA2025/11/20 23:36

By:Bitget-RWA

- Tether's gold reserves hit 116 tons, rivaling small central banks as it accumulates 26 tons in Q3 alone to hedge dollar volatility. - The stablecoin issuer's strategy includes $300M+ investments in mining ventures and hiring top traders, reshaping global bullion market dynamics. - Jefferies estimates Tether accounts for 2% of global gold demand, amplifying supply constraints as central banks tripled purchases to 64 tons in September. - Tether's gold-backed stablecoins and planned USAT token raise transpa

Tether's Gold Holdings Climb to 116 Tons, Challenging Smaller Central Banks

The stablecoin provider

Tether

has accumulated a gold stockpile totaling 116 tons, making it one of the largest private holders of gold worldwide,

as detailed in a Jefferies report

Tether’s Move to Acquire Gold as a Shield Against Dollar Fluctuations Transforms the International Bullion Market image 0

The company’s rapid acquisition—adding 26 tons in just the third quarter—has drawn parallels with smaller national banks and is influencing the global gold market landscape.

Experts believe

Tether’s approach—focused on diversifying its assets and protecting against fluctuations in the U.S. dollar—could further restrict gold availability and boost bullish market sentiment.

Tether’s aggressive gold purchases are part of a wider metals investment plan, which also includes stakes in royalty and streaming businesses,

with investments exceeding $300 million in these areas

this year. The company has additionally

obtained mining rights and recruited leading traders

from firms such as HSBC, signaling a stronger move into the physical gold sector. Meanwhile,

Royal Gold Inc. has recently transferred shares of mining company Versamet to Tether

, expanding Tether’s presence in the industry.

The effect on gold pricing is significant.

Jefferies calculates

that Tether’s acquisitions represent about 2% of the world’s gold demand, a large enough share to impact short-term supply. This fits with broader market movements:

Goldman Sachs noted

that central banks tripled their gold purchases to 64 tons in September, with China increasing its reserves by 15 tons. Tether’s buying, however,

is notable for its unconventional source

, as its gold assets now compete with those of smaller central banks.

BiyaPay’s analysts point out

Tether’s combined emphasis on gold and

Bitcoin

, describing the approach as a “hybrid reserve model” to counteract dollar volatility.

Through the use of gold-backed stablecoins

such as

USDT

and the soon-to-launch XAUt token, Tether seeks to reinforce the long-term reliability of its crypto assets. However,

the company’s forthcoming GENIUS Act-compliant stablecoin

, USAT, which will not be backed by gold, introduces questions about the ongoing need for physical gold reserves.

The heightened demand for gold extends beyond large institutions.

India’s gold imports soared to $14.7 billion

in October, fueled by festival and wedding season purchases. While Tether’s activity differs from consumer buying, it highlights a worldwide trend of turning to gold as a safe haven during economic instability.

Both critics and market watchers are paying close attention.

Tether’s gold assets, now worth over $13.67 billion

, may increase further as USDT usage rises. Still,

the company’s lack of reserve transparency and the speculative aspect

of its gold-backed coins continue to prompt concerns about openness and regulatory oversight.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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