Tether has become one of the world’s most aggressive buyers of gold. In recent months, it purchased more gold than any central bank. By the end of September 2025, Tether had amassed approximately 116 tonnes of gold. This holding is valued at roughly $14 billion.
This buying activity is notable because Tether is a stablecoin issuer. Stablecoins are cryptocurrencies designed to maintain a stable value. Tether’s primary token, USDT, is meant to be backed by reserves. The company has been expanding its gold reserves to support both USDT and its gold-backed token, XAUt. Precious metals now make up about 7% of Tether’s total reserves.
The timing of this gold accumulation has raised questions. A new US law called the GENIUS Act now bars compliant stablecoin issuers from holding gold in their reserves. The law pushes firms to use cash, Treasury bills, or other liquid assets instead. Tether has announced a new token, USAT, that will follow these rules. However, the company continued to buy gold for its existing USDT stablecoin even after the law was passed.
Tether’s public stance is strongly pro-crypto. Its significant move into a traditional asset like gold seems to contradict this position. The reason for this shift remains unclear. Gold prices had surged 56% in 2025 but have since cooled, trading more than 6% below a recent peak.
This situation creates a new link between the crypto and gold markets. A large-scale selloff of Tether’s stablecoin could theoretically force the company to sell its gold holdings. This would connect the price of physical bullion to the volatility of the crypto market.
There is a conceptual link between gold and Bitcoin, which is often called “digital gold.” Both are seen by some as protection against weakening traditional currencies. In practice, their market behaviors are very different. Bitcoin remains highly volatile, sometimes acting more like a speculative tech asset. Stablecoins, however, promise stability and instant redemption, relying on reserves that are supposed to be safe and liquid.
