What To Know:
- Tether has been buying up to two tons of gold per week, translating to more than $1 billion in monthly purchases, placing it among the largest bullion buyers globally.
- The company now holds about 140 metric tons of physical gold, valued near $24 billion, with part of the reserves backing its gold-linked stablecoin XAUT.
- Analysts say Tether’s accumulation rivals national buyers, as rising gold prices have driven over $5 billion in appreciation across portions of its holdings.
Tether, the issuer of the world’s largest stablecoin, has quietly emerged as one of the most aggressive buyers in the global gold market, and has accumulated physical bullion at a pace that rivals sovereign nations.
According to comments made by Chief Executive Paolo Ardoino, the company has been buying as much as two tons of gold every week. At current market prices, that buying rate translates to more than $1 billion in monthly acquisitions. Ardoino said the strategy is expected to continue for at least the next several months.
Tether’s Gold Accumulation Rivals Several National Buyers
The gold is not stored in commercial vaults typically used by financial institutions. Instead, deliveries are sent to a high-security former nuclear bunker in Switzerland. Ardoino described the site as resembling something out of a spy film.
Tether’s total gold holdings have now reached roughly 140 metric tons. At current spot prices, the stockpile is valued at about $24 billion. That places the company among the largest known holders of physical gold globally, behind only governments, central banks, and major exchange-traded funds.
Most of the bullion forms part of Tether’s corporate reserves. A portion is used to back its gold-linked stablecoin, Tether Gold, or XAUT, which has a market capitalization of around $2.7 billion, according to CoinGecko data. Each token represents ownership of physical gold held in custody.
The scale of Tether’s accumulation has exceeded that of several national buyers. Company data shows that during the final quarter of 2025 alone, Tether added 27 metric tons of gold to its exposure. That pace surpassed purchases made by countries including Greece, Qatar, and Australia over the same period.
Ardoino said the company now operates at a level comparable to sovereign gold holders, a position that comes with increased responsibility. He added that the appeal of gold-backed digital assets has grown as confidence in traditional monetary systems weakens and demand rises for assets with direct physical backing.
That concern is echoed by Björn Schmidtke, chief executive of Aurelion, the firm managing Tether’s gold treasury operations. Schmidtke argues that much of today’s gold investment market is built on financial instruments rather than physical ownership.
He estimates that roughly 98 percent of gold exposure comes through exchange-traded funds and similar products. In these structures, investors rarely know which specific bars they own, or whether delivery would be possible during market stress. Schmidtke refers to this model as “paper gold.”
In periods of financial strain, he warned, redemption bottlenecks could emerge if many investors seek physical delivery at once. Tokenized gold, he said, removes uncertainty by linking each unit directly to identifiable bullion and offering verifiable proof of ownership.
Tether’s strategy has drawn attention as gold prices continue to climb. The metal has risen more than 90 percent over the past twelve months and recently traded above $5,260 per ounce. Market analysts say strong demand from institutions, central banks, and large private buyers has contributed to the rally.
Jefferies Group estimates that Tether’s purchases have added upward pressure to prices, though they were not the sole driver. Central banks also played a significant role. The World Gold Council reported that Poland, Kazakhstan, Brazil, and Azerbaijan ranked among the largest official buyers last year.
Ardoino believes geopolitical dynamics are also shaping demand. He pointed to growing interest among foreign governments in gold-backed digital instruments that could reduce reliance on the U.S. dollar for cross-border settlement.
Several members of the BRICS bloc have been among the largest net buyers of gold in recent years. Russia stands as a notable exception, having sold some reserves while facing the financial strain of ongoing conflict.
As gold prices reached record highs, the value of Tether’s holdings rose sharply. Based on disclosed figures, Jefferies estimates that the company held around 116 tons of gold by the end of September 2025, valued at approximately $14.4 billion at the time.
Since then, prices have climbed from roughly $3,858 per ounce to above $5,200. That move alone implies an appreciation of more than $5 billion on that particular amount of Tether’s reserves.
Also Read: Tether Debuts US-Regulated Stablecoin as Profits Reach $15B in 2025
