Tether scores $5bn windfall as gold price rockets
Stablecoin company owns at least 116 tonnes of bullion, making it one of biggest winners from blistering rally
The value of Tether’s gold holdings has soared by more than $5bn as the world’s biggest stablecoin company benefits from the precious metal’s record-breaking rally.
Tether held about 116 tonnes of gold at the end of September, according to Jefferies estimates based on Tether’s disclosures, which was then worth about $14.4bn.
The price of gold at the end of September was $3,858 per troy ounce but has since soared to more than $5,200 as investors pile into the haven asset in the face of rising geopolitical uncertainty — meaning Tether has made a gain of more than $5bn on those holdings.
The company said this week that it bought a further 27 tonnes of bullion in the fourth quarter of last year for its gold-backed stablecoin, which has risen in value by at least $700mn this year.
Tether’s overall gold holdings are now worth about $24bn, making it one of the world’s biggest beneficiaries of the storming gold rally.
The crypto company is one of the world’s top holders, owning about as much bullion as Qatar’s central bank, according to World Gold Council figures. The UK holds 310 tonnes of gold.
“Tether is the largest holder of gold outside central banks and its holdings are roughly equal to smaller central banks such as Korea, Hungary and Greece,” Jefferies analysts wrote in November.
Tether is likely to have bought more bullion this year to back its stablecoins. Chief executive Paolo Ardoino has celebrated gold hitting repeated highs this year in X posts, and has previously likened the metal to “natural bitcoin”.
Tether did not respond to a request for comment on the rise in value of its gold.
The price of gold climbed past $5,000 for the first time this week as mounting global tensions drove investors into precious metals. President Donald Trump’s tariff threats and demand to seize Greenland have propelled the price of gold to repeated record highs this year.
Tether is the world’s biggest crypto company and its USDT token is the most widely used stablecoin with a circulating value of $187bn. Stablecoins are a type of digital cash most commonly used by traders to move between sovereign currencies and crypto.
USDT is pegged 1-1 to the US dollar and Tether uses gold alongside other assets including bitcoin, US Treasuries and secured loans to back the stablecoin.
It also has a separate gold-backed token, XAUt, and holds bullion in Swiss vaults.
On Tuesday Tether launched USAT, its US-specific token that is compliant with the Genius Act stablecoin law. The company is seeking to use the new stablecoin to expand into the US and last year hired Bo Hines, former head of Trump’s crypto advisory council, to strengthen its ties to Washington.
As well as directly owning gold, Tether has invested in companies including gold royalty firms Elemental Altus and Versamet Royalties, as it seeks to broaden the distribution of its stablecoin.
For years the company has faced scrutiny over its reserves. Last year S&P Global Ratings downgraded Tether’s reserves to its weakest rating due to rising exposure to high-risk assets, saying that the rising proportion of risky assets exposed the token’s reserves “to greater market fluctuations”.
“We wear your loathing with pride,” Ardoino said in response, adding that the company had “no toxic reserves”.