Tether's Bold Move with Gold: The Emergence of a Digital Central Bank

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Tether's Bold Move with Gold: The Emergence of a Digital Central Bank

Bitget-RWA2025/11/26 13:10

By:Bitget-RWA

The leading stablecoin issuer

Tether

has accumulated 116 metric tons of physical gold, a stockpile comparable to the reserves held by the central banks of Hungary, South Korea, and Greece,

as highlighted in a recent Jefferies report

. The investment bank pointed out that Tether’s gold acquisitions in the previous quarter represented almost 2% of worldwide gold consumption and 12% of all central bank purchases, highlighting its expanding role in the gold sector. This assertive buying has tightened short-term supply and attracted speculative capital, with many investors betting that Tether will secure another 100 tons by 2025. The company’s

reported $15 billion in profits this year

indicates that this goal is within reach.

Tether’s approach goes beyond simply buying bullion. The firm has allocated more than $300 million to gold-focused investments, such as acquiring a 32% interest in Canada’s Elemental Altus Royalties and making exploratory investments throughout the gold supply network. These actions are part of a broader effort to diversify Tether’s reserves, which also include U.S. Treasuries and

Bitcoin

. Tether also supports its gold-backed token, Tether Gold (XAUt), whose supply has doubled in the past six months, adding $1.1 billion in value since August.

XAUt now boasts a $2.1 billion market capitalization

, signaling growing institutional interest in tokenized gold.

Jefferies suggests that Tether’s gold initiatives could transform the market landscape. By digitizing gold, Tether addresses inefficiencies in traditional gold trading, such as the complexities of handling physical gold, high ETF fees, and the costs associated with rolling futures contracts. The company’s strategy resembles that of central banks, involving reserve management and liquidity oversight, while utilizing blockchain to improve accessibility. Nonetheless, regulatory challenges remain.

The U.S. GENIUS Act, passed in July 2025

, prohibits gold from being included in compliant stablecoin reserves, requiring Tether to introduce a U.S.-focused stablecoin, USAT, backed exclusively by Treasuries. This dual approach is designed to maintain regulatory compliance while pursuing its broader ambition of a “borderless central bank” model.

Tether’s gold buying spree has had a clear effect on the market. Gold prices jumped more than 50% in 2025, with many analysts crediting much of the surge to ongoing demand from Tether. The company’s expansion into gold mining and refining further cements its status as an unconventional player in the industry, with the potential to alter capital flows within the sector.

Rivals such as gold miners and traditional gold ETFs

, now face both new opportunities and challenges as Tether’s influence grows.

Looking forward, Tether’s gold strategy may set new standards for stablecoin stability and asset diversification. As regulatory oversight increases, the company’s two-pronged strategy—balancing adherence with innovation—positions it to adapt to changing conditions. Investors are expected to monitor Tether’s upcoming attestation reports, the rollout of USAT, and additional gold-related investments, all of which could continue to shape both digital and conventional markets

as noted by market analysts

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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