Tether’s Gold Holdings Rival Central Banks, Signaling Tokenized Gold Potential

• Tether surpassed central banks as the biggest gold buyer in Q3 2025, acquiring 26 tonnes.

• Its reserves now match those of smaller central banks such as Korea, Hungary, and Greece.

• Tokenized gold market hit $3.9 billion in supply, with Tether Gold (XAUT) growing over $2 billion in H2 2025, per Coingecko data.

Discover Tether gold reserves surge in 2025: 116 tonnes held, topping central banks. Explore tokenized gold boom and investment implications for stablecoin users today.

What are Tether’s gold reserves in 2025?

Tether gold reserves have expanded significantly to 116 tonnes as of September 2025, positioning the stablecoin issuer as a major player in physical gold holdings. This accumulation, detailed in its reserve attestation report, reflects a strategic diversification beyond traditional fiat backing for USDT. Tether’s focus on gold supports the growth of its Tether Gold (XAUT) token, which tracks physical gold prices.

Why did Tether increase its gold purchases in Q3 2025?

Tether’s gold purchases in Q3 2025 totaled 26 tonnes, outpacing demand from central banks in Kazakhstan and Brazil, according to data aggregated by the Financial Times. This marks a shift from quarterly net demands of 3 to 7 tonnes in 2024 to over 23 tonnes in earlier 2025 periods. Investment bank Jefferies highlighted that Tether’s vault now rivals reserves of smaller central banks like those in Korea, Hungary, and Greece, underscoring its growing influence in commodity markets. The surge aligns with gold prices climbing nearly 40% to $4,300 per ounce, potentially catalyzing further market rallies as noted by Jefferies analysts.

Tether, the world’s largest stablecoin issuer, has emerged as the top gold buyer in Q3 2025, surpassing central banks’ demand.

According to aggregated data from the Financial Times, Tether purchased 26 tonnes of gold in the quarter.

Source: Financial Times

According to investment bank Jefferies, Tether is now the largest holder of gold outside central banks, citing its 116 tonnes per the September reserve attestation report.

The bank added that Tether’s gold vault now “roughly equals that of smaller central banks, such as Korea, Hungary, and Greece.”

How has Tether’s gold demand evolved in 2025?

Gold has long backed Tether’s USDT stablecoin reserves, but 2025 saw accelerated accumulation amid tokenized asset growth. Quarterly demand jumped from 23.5 tonnes in Q2 to 25.9 tonnes in Q3, per Financial Times analysis. This buildup coincides with a 40% gold price increase from $3,000 to $4,300 per ounce, with Jefferies suggesting Tether’s purchases may drive market momentum.

Tether has had gold as part of the reserves backing its USDT stablecoin. However, in light of the surge in gold’s price, demand for Tether gold (XAUT), a tokenized gold, also spiked.

In 2024, Tether’s net demand for gold ranged from around 3 to 7 tonnes per quarter. However, in 2025, the demand surged to 23.5 tonnes in Q2 and increased to 25.9 tonnes in Q3.

Source: Financial Times

Over the same period, gold’s price rose by nearly 40%, rising from $3,000 to $4,300. According to Jefferies, Tether is a new demand line for gold and could have been the catalyst behind the rally.

The bank added that Tether might be betting that tokenized gold could go mainstream, like stablecoins did, and could be positioning itself accordingly.

What role do tokenized golds like XAUT play?

Tokenized gold products such as Tether Gold (XAUT) and Pax Gold (PAXG) offer accessible alternatives to traditional ETFs, avoiding high fees and minimum investments that deter retail investors. Market supply for these assets reached a record $3.9 billion in 2025, rivaling stablecoin inflows, as reported by Coingecko. XAUT expanded from under $1 billion to over $2 billion, while PAXG grew to $1.3 billion in the second half of the year. Jefferies analysts emphasize that on-chain gold is gaining traction, though regulatory clarity from the SEC could determine sustained growth. This development enhances liquidity and transparency in digital asset markets, appealing to a broader investor base.

Additionally, the analysts noted that retailers can’t hold typical gold ETFs due to the hefty fees and minimum investment requirements.

As a result, Tether gold and other on-chain versions, such as Pax gold (PAXG), could become attractive for retailers. Especially since they don’t have ETF restrictions.

In fact, tokenized gold reached a record high of $3.9 billion in market supply and rivalled stablecoins in inflows.

Tether gold and Pax gold, for example, expanded from below $1 billion to over $2 billion and $1.3 billion, respectively, in H2.

Source: Coingecko

This simply reinforces Jefferies’ claim that on-chain gold has been picking up traction. However, it remains to be seen whether the momentum will continue after the SEC establishes clear rules for tokenized markets.

Frequently Asked Questions

What is the size of Tether’s gold reserves compared to central banks?

Tether holds 116 tonnes of gold as of September 2025, equivalent to reserves of smaller central banks like Korea’s, according to Jefferies and Tether’s attestation report. This positions it as the top non-sovereign holder, with Q3 purchases of 26 tonnes exceeding several nations’ quarterly demand.

How does Tether Gold (XAUT) differ from traditional gold investments?

Tether Gold (XAUT) is a blockchain-based token backed by physical gold in vaults, allowing fractional ownership without storage hassles or high ETF fees. It provides real-time pricing and easy transfers on crypto exchanges, making gold accessible for retail investors worldwide.

Key Takeaways

• Tether’s Q3 2025 gold purchases topped central banks: Acquired 26 tonnes, driving its total reserves to 116 tonnes and establishing it as a key market player.
• Tokenized gold market expansion: Supply hit $3.9 billion, with XAUT surpassing $2 billion, highlighting on-chain assets’ rising appeal per Coingecko.
• Strategic positioning for growth: Jefferies suggests Tether anticipates mainstream tokenized gold adoption, similar to stablecoins, amid 40% price surges.

Conclusion

Tether’s gold reserves buildup to 116 tonnes in 2025 underscores its commitment to diversifying stablecoin backing amid tokenized gold’s rapid growth. As demand for accessible assets like XAUT rises, Tether solidifies its role in bridging traditional commodities and digital finance. Investors should monitor regulatory developments for opportunities in this evolving sector.