Tether Becomes World’s Largest Gold Buyer: What It Means for Stablecoins and the Future of USDT

Tether, the company that issues the world’s biggest stablecoin, USDT, surprised many people when it became the largest buyer of gold in the third quarter of 2025. Tether bought 26 tonnes of gold, which is more than what central banks in Kazakhstan and Brazil purchased during the same period. According to investment bank Jefferies, this makes Tether the biggest holder of gold outside of central banks. The firm now holds about 116 tonnes of gold, based on its September reserve report. Jefferies also noted that Tether’s gold reserves are now similar in size to those held by smaller central banks like South Korea, Hungary, and Greece.

At first, traders were confused, why would a crypto company buy so much of a traditional asset like gold? But the decision is actually part of a bigger plan. Tether’s move shows how the global economy is changing. Stablecoin companies are now under more pressure to hold stronger, safer reserves. At the same time, investors around the world are looking for protection as inflation rises and financial markets become more unstable. By adding large amounts of gold to its reserves, Tether seems to be preparing for a future where keeping value safe requires more than just cash and government bonds.

Why Tether Turned to Gold?

Diversifying Reserves During Economic Uncertainty

USDT maintains its value by holding a reserve of assets that backs every token. In past years, these reserves were mostly made up of cash, bank deposits, and short-term government securities. But rising inflation, unpredictable interest rate changes, and concerns around global debt markets have made those traditional assets less secure than before.

Gold offers Tether something different. It is a physical asset with a long history of holding value, especially during times of economic instability. By adding gold to its reserves, Tether reduces its reliance on financial markets that may fluctuate sharply during periods of stress. This approach helps protect the long-term value of the assets supporting USDT.

Strengthening Confidence Among Users and Institutions

Stablecoins succeed only when users trust that the asset is fully backed and redeemable. Over the years, Tether has faced questions and skepticism regarding the composition and transparency of its reserves. Adding gold is a clear and visible way to show that part of its backing consists of a universally recognized store of value, not just financial instruments.

Gold is easy to track, difficult to manipulate, and globally accepted. Its inclusion in the reserve design signals that Tether is committed to strengthening its stability and giving users more confidence in the long-term reliability of USDT.

Reducing Exposure to Regulatory and Currency Risks

Because USDT is used across the world, Tether must navigate many regulatory environments and economic conditions. Depending too heavily on a single currency or financial system can be risky. Gold helps avoid this issue because it is not tied to any specific government or monetary authority.

Holding gold gives Tether insulation from sudden policy changes, bond market problems, or liquidity issues in any single country. This flexibility is valuable for a stablecoin that serves global users, including regions with unstable currencies.

Tether’s massive move into gold shows how fast the financial world is changing. As markets become more unstable, even major crypto companies are turning to traditional assets to protect their reserves. By holding more gold, Tether is trying to make USDT stronger, safer, and more reliable for users around the world. This shift signals that the line between digital assets and traditional finance is becoming thinner than ever.

Do you think adding gold makes USDT safer, or is it a sign that stablecoins may face even bigger challenges ahead?