Jefferies says the stablecoin issuer’s 116-tonne gold stockpile is influencing global demand and shaping short-term market sentiment
Tether’s deepening commitment to physical gold has placed the stablecoin issuer among the world’s most significant holders of the metal, according to new analysis from Jefferies. With 116 tonnes of bullion now in its reserves, Tether’s stockpile is comparable to the gold holdings of South Korea, Hungary and Greece, raising questions about its influence on global demand and market dynamics.
Tether Gold Demand and Market Impact
Jefferies’ review shows that Tether’s recent purchases accounted for nearly 2% of global gold demand last quarter and almost 12% of central bank buying. Analysts said the firm’s aggressive accumulation has likely tightened short-term supply and contributed to shifting investor sentiment.
“When a private entity with Tether’s scale absorbs this volume of physical gold, it can meaningfully influence short-term liquidity and speculative flows.”
Jefferies added that investors expect Tether to purchase another 100 tonnes in 2025, a target viewed as realistic given projections that the company will generate around $15 billion in profit this year.
Tether Expands Across the Gold Supply Chain
Beyond buying bullion, Tether has spent more than $300 million this year acquiring stakes in precious-metal producers. That includes a 32% stake in Elemental Altus Royalties, a Canadian gold royalty firm.
The company has also explored investments in mining, refining, trading and royalty operations, positioning itself deeper inside the supply chain as part of a broader strategy to diversify reserves.
This push coincides with fast-growing issuance of Tether Gold (XAUt), its token backed by physical bullion stored in Switzerland. On-chain data shows XAUt supply has doubled in six months, with Tether adding 275,000 ounces—about $1.1 billion worth—since August. Tether Gold now has a market capitalization of $2.1 billion.
The scale of Tether’s operations increasingly resembles that of a monetary authority. The company mints and redeems its dollar-denominated token directly for verified clients, effectively expanding or contracting supply in real time. Its reserves include short-duration U.S. Treasurys, gold and Bitcoin, generating income similar to a central bank holding interest-bearing assets while issuing a non-interest-bearing liability.
Tether also employs policy tools such as address freezes requested by law-enforcement agencies and selective network deprecations aimed at reducing operational risk.
As Jefferies notes, the rapid growth of Tether’s balance sheet—and now its central-bank-sized gold reserves—signals a widening role for the company in both digital and traditional financial markets.
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