- The Whale: Tether bought 26 tonnes of gold in Q3, accounting for 2% of global demand.
- The Scale: Total holdings (116 tonnes) now exceed the central bank reserves of South Korea and Australia.
- The Strategy: 104 tonnes act as a surplus buffer for USDT, defying S&P’s “weak” rating on asset risk.
Tether’s growing presence in the global gold market is prompting renewed scrutiny as new data places the stablecoin issuer ahead of sovereign buyers in recent quarterly purchasing activity.
New data shows the stablecoin issuer purchased 26 tonnes of gold in Q3 alone. The acquisition spree places Tether ahead of nearly every sovereign buyer for the period, effectively positioning the private firm as a “shadow central bank” in the global bullion market.
Related: Tether Reports $4.9B Q2 Profit and $2.6B Gains from Bitcoin, Gold Reserves
The ‘Whale’ in the Bullion Market
According to a report by Jefferies, Tether’s Q3 aggressive bid accounted for approximately 2% of global gold demand. This single-handed buying pressure tightened physical supply chains at a time when gold prices were already hitting record highs.
Mid-range buyers such as Turkey, Iraq, and Guatemala accumulated 6 to 7 tonnes each, and additional purchases ranging from 1 to 5 tonnes were recorded from the Czech Republic, China, Ghana, and Azerbaijan’s sovereign wealth fund. Several Asian and Eastern European countries added smaller tranches of 1 to 2 tonnes.
The comparison highlights two parallel developments: steady accumulation among state buyers and the sudden entrance of Tether as a participant in physical-market flows. Analysts noted that the data reflects formally reported purchases and may not capture off-book or delayed disclosures.
Bitcoin Remains Part of Tether’s Reserve Strategy
Market reaction to the chart prompted questions about Tether’s reserve allocation. Sam Callahan, a market analyst, noted that the company maintains 87,475 BTC, supported by a policy adopted in 2023, which commits up to 15% of net operating profits to regular Bitcoin purchases.
Records show that its holdings exceeded 100,000 BTC earlier in the year before portions were redeployed into Bitcoin-focused firm XXI, confirming that gold accumulation has not replaced its digital-asset positions.
Broader Expansion Into Gold-Linked Investments
Tether’s gold activity has drawn heightened attention since the company disclosed that its third-quarter purchases totaled 26 tonnes, raising its overall bullion reserves to about 116 tons. Jefferies analysts stated that the buying represented approximately 2% of global quarterly demand, with 12 tons supporting the XAUt token and around 104 tons held within USDT reserves. The firm noted that the timing of acquisitions likely added pressure to already tight supply conditions.
Beyond reserve holdings, analysts identified additional exposure across revenue and recurring investments, totalling more than $300 million this year, alongside new mining concessions and hires from HSBC’s metals desk.
Related: Tether’s Expanding Gold Position Gains Global Attention as Holdings Reach 116 Tons
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Source: https://coinedition.com/tether-gold-reserves-q3-purchase-central-bank-rival/
