Bitcoin Updates: Tether's Bold Move into Gold—Balancing Influence and Stability Issues

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Bitcoin Updates: Tether's Bold Move into Gold—Balancing Influence and Stability Issues

Bitget-RWA2025/11/26 20:00

By:Bitget-RWA

- Tether , issuer of the world's largest stablecoin, now holds 116 tons of gold ($12.9B), surpassing central banks like South Korea's. - The firm's aggressive gold purchases (26 tons in Q3 2025) and 37.8% stake in a Canadian gold royalty firm signal vertical integration into the gold supply chain. - S&P Global downgraded Tether's USDT stability rating to "weak" due to 7.13% gold and 5.44% Bitcoin exposure, risking reserve coverage if crypto prices drop. - Tether's gold-backed strategy challenges traditiona

Tether, the company behind the world's leading stablecoin, has become the largest private gold holder worldwide, overtaking central banks in countries like South Korea, Hungary, and Greece.

As reported by Bloomberg and Jefferies

, Tether's gold holdings have now surpassed 116 tons, with a value exceeding $12.9 billion as of September 2025. This marks a significant transformation in its reserve management approach and alters how stablecoin reliability is viewed. The rapid increase, fueled by substantial purchases in the third quarter of 2025—including an additional 26 tons—has established

Tether

as a major force in the gold sector,

putting it on par with medium-sized national reserves

The shift towards gold signals a broader diversification of Tether's reserve assets, with gold now making up 7% of its total holdings, alongside

Bitcoin

and secured lending. Originally intended as a safeguard against global economic volatility and inflation, this strategy accelerated in 2025 as gold prices climbed more than 50% year-to-date.

Jefferies analysts point out

that Tether's gold acquisitions represented 2% of worldwide demand in Q3, tightening the market and affecting investor sentiment.

Bitcoin Updates: Tether's Bold Move into Gold—Balancing Influence and Stability Issues image 0

The company's approach also includes deeper involvement in the gold industry, such as holding a 37.8% share in Canadian gold royalty company Elemental Altus Royalties, with

intentions to increase its stake to as much as 51.8%

Nevertheless, this expansion has drawn attention from critics. S&P Global Ratings recently lowered Tether's USDT stability rating from "constrained" to "weak," citing increased exposure to volatile assets like Bitcoin (5.6% of reserves) and gold. The agency cautioned that a drop in Bitcoin or other high-risk assets could weaken reserve coverage, potentially leaving USDT insufficiently backed

according to S&P Global Ratings

. Tether's reserves now consist of 7.13% gold and 5.44% Bitcoin, while cash and equivalents make up 77.23%, indicating a move away from its previous focus on cash and Treasuries

as outlined in financial disclosures

The impact goes beyond Tether itself. By becoming a leading gold purchaser, the company has affected both the cryptocurrency and traditional financial markets. Gold's reputation as a safe-haven asset is now linked with digital finance, especially as tokenized gold (XAU₮) gains popularity. Jefferies projects Tether could buy another 100 tons in 2025,

leveraging its projected $15 billion annual profits

. At the same time, regulators are challenged to align Tether's gold-backed reserves with rules such as the U.S. GENIUS Act, which

requires stablecoins to be fully backed by "high-quality liquid assets"

Looking forward, Tether is pursuing a dual strategy—growing its gold and Bitcoin reserves while also preparing to launch a U.S.-compliant stablecoin (USAT) backed by Treasuries—to address regulatory demands and maintain its market lead. While rivals may attempt similar moves, Tether's scale and infrastructure provide a significant head start. For investors, this development

highlights the evolution of the crypto industry

where tangible assets support digital currencies, though risks like market dominance and regulatory ambiguity persist.

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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