Investment bank Jefferies recently highlighted Tether, the stablecoin issuer, as a significant and emerging force in the gold market. According to their analysis, Tether has quietly accumulated considerable volumes of gold, which has tightened supply and impacted market sentiment.
Jefferies estimates Tether now holds at least 116 tons of gold, ranking it among the largest holders globally, only surpassed by central banks. This surge in Tether’s gold holdings is attributed to a combination of robust USDT growth, increasing profits, and a strategic shift supporting gold accumulation.
In their report, Jefferies indicated that Tether’s gold acquisitions have contributed to the precious metal’s steep price rise this year, which has exceeded 50% and currently trades around $4,080 per ounce. The bank’s findings stem from attestation data and on-chain activity, showing a significant increase in Tether’s bullion over recent months.
Jefferies initially identified Tether’s interest last fall when it engaged with miners and royalty firms in Denver. Reports indicated Tether planned to purchase about 100 tons of gold in the current year. Comments from CEO Paolo Ardoino on bolstering reserves with gold, alongside rising gold prices, further supported investor confidence in Tether’s gold strategy.
Analysts at Jefferies, led by Andrew Moss, noted that Tether’s gold holdings include approximately 12 tons backing its XAUt token, valued around $1.57 billion, and about 104 tons backing USDT, worth approximately $13.67 billion. This positions Tether as the largest non-sovereign holder, comparable to smaller central banks. Notably, the pace of Tether’s gold accumulation stood out, with about 26 tons added in the third quarter alone, accounting for around 2% of global gold demand at that time.
Looking ahead, Jefferies predicts Tether will continue its accumulation, maintaining around 7% of its reserves in gold. Projections indicate that with Ardoino forecasting a profit of $15 billion for 2025, just half of that reinvested into gold could increase their holdings by an additional 60 tons annually. However, the long-term effects of Tether’s upcoming stablecoin proposal, which will not require gold reserves, remain uncertain.
In addition to gold, Tether has invested over $300 million into royalty and streaming companies, indicating a broader strategy within the gold market. The hiring of two top metals traders from HSBC further suggests Tether’s commitment to increasing its presence in the gold sector.
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