Jefferies says Tether has rapidly emerged as one of the most influential buyers in the global gold market, helping drive the metal’s steep rise this year.
Gold prices have surged more than 50% in 2025, hovering near $4,080 per ounce. According to Jefferies, that rally cannot be fully explained by conventional factors like central-bank accumulation or macro hedging. Instead, the firm points to Tether’s aggressive addition of bullion to its reserves—activity that appears to be constraining supply and strengthening upward momentum. Attestation filings and blockchain data reveal that the stablecoin issuer has been steadily increasing its gold holdings throughout the year.
Jefferies first detected Tether’s ambitions after meetings with mining and royalty firms in Denver last autumn. Market participants told the bank that Tether aimed to acquire roughly 100 tons of gold in 2024. Public comments from CEO Paolo Ardoino about expanding gold exposure, combined with a sudden $1,000-per-ounce price swing, reinforced the view that the company had become a major buyer.
The bank now estimates that Tether controlled at least 116 tons of gold at the end of the third quarter. About 12 tons support its XAUt token—valued around $1.57 billion—while roughly 104 tons back USDT, representing an estimated $13.67 billion in metal. This places Tether among the largest non-central-bank holders of gold worldwide, comparable to several smaller sovereign reserve portfolios. XAUt’s market capitalization currently stands near $1.5 billion, per CoinMarketCap.
Jefferies says the speed of these purchases is among the most striking details. Tether added approximately 26 tons in the third quarter alone, accounting for about 2% of global quarterly demand. While not enough to overshadow official-sector buying, the accumulation likely contributed to tighter supply conditions and reinforced bullish sentiment during a period of strong momentum.
Looking ahead, Jefferies expects Tether to continue increasing its bullion reserves as USDT grows and gold maintains its roughly 7% share of the company’s backing assets. With Ardoino forecasting $15 billion in profit for 2025, analysts estimate that allocating even half of those earnings to gold would translate to nearly 60 tons of additional annual demand.
The report also highlights uncertainty tied to USAT, Tether’s forthcoming GENIUS Act–compliant stablecoin, which will not require gold reserves. Its eventual adoption could influence how much gold Tether continues to accumulate over the long term.
Beyond reserve purchases, Jefferies noted that Tether has extended its footprint across the broader gold ecosystem, investing more than $300 million in royalty and streaming companies this year. The recent recruitment of two senior HSBC metals traders underscores that Tether’s expansion into the metals sector is accelerating, not slowing.
