Tether’s Gold Rally Obscures the Line Between State and Private Market Influence

Tether has increased its gold reserves to 116 tons, positioning the stablecoin provider among the largest holders of bullion outside of central banks,

. The company currently allocates 12 tons to back its XAUt token and 104 tons for its USDT stablecoin, making it the most significant non-governmental participant in the gold market. In the third quarter alone, Tether added 26 tons, , which has contributed to a tighter supply and helped propel gold prices to new records.

The report notes Tether’s deliberate shift toward gold, motivated by CEO Paolo Ardoino’s vocal support for the asset and the company’s rising earnings.

predict that Tether’s gold stash could grow further as USDT’s circulation increases and gold continues to make up 7% of its reserves. With profits expected to surpass $15 billion in 2025, reinvesting even half of that into gold could mean nearly 60 additional tons each year.

Tether’s impact goes beyond direct gold purchases. The company has

into and streaming companies this year, including a recent deal for Versamet shares from . This approach fits a broader plan to deepen its involvement in the gold sector, to strengthen its business.

The jump in private-sector buying stands in contrast to the mixed actions of central banks.

that China boosted its gold reserves by 15 tons in September, ending a quiet summer and contributing to a three-year rally. Meanwhile, India’s gold holdings fell by $1.95 billion in November, in its foreign reserves. These differing trends highlight the increasing influence of non-traditional players in the gold market.

Gold has

, reaching $4,080 per ounce, as both central banks and private investors seek protection from geopolitical and economic uncertainty. credits much of the recent price swings to Tether’s aggressive buying, which has surpassed traditional sources of demand. The firm believes Tether’s continued acquisitions could keep supply tight, even if central bank activity remains steady.

The broader market could feel significant effects.

, especially XAUt, have gained momentum, now boasting a $1.5 billion market cap. However, the upcoming launch of the GENIUS Act-compliant USAT stablecoin—which won’t require gold reserves—raises questions about the future scale of Tether’s gold acquisitions.

As Tether’s gold assets approach those of smaller central banks, the distinction between government and private influence in the gold market continues to

. With central banks focusing on diversification and leveraging its financial strength, the interaction between these forces is set to shape gold’s global role for years ahead.