Tether, the company behind the world’s largest stablecoin USDT, has disclosed a substantial expansion of its gold holdings, underscoring a growing shift toward hard‑asset backing amid uncertainty across crypto and traditional financial markets.
Tether Expands Gold‑Backed Stablecoin Reserves
Gold crossed the $5,000 per ounce threshold for the first time on Monday, a milestone that market observers had not previously seen. Prices briefly climbed to around $5,110 per ounce as safe‑haven demand accelerated.
Tether revealed that it significantly increased its gold exposure during the fourth quarter of 2025. The company disclosed that gold‑backed stablecoins (XAU₮) experienced rapid growth throughout the year, with total market capitalization rising from roughly $1.3 billion to more than $4 billion.
According to Tether’s attestation report, this expansion was fueled by record‑high gold prices, rising geopolitical fragmentation, and growing demand from both institutional investors and crypto‑native users for fully on‑chain safe‑haven assets.
Within the gold‑backed stablecoin sector, Tether Gold emerged as the dominant issuer, accounting for approximately 60% of the total supply in circulation.
By the end of the fourth quarter, total physical gold reserves stood at 520,089.350 fine troy ounces. Each token is backed on a one‑to‑one basis by a fine troy ounce of physical gold. At current prices, the total market value of these holdings reached approximately $2.25 billion.
Crypto Giant Ranks Among Top 30 Global Gold Holders
Tether confirmed that all gold reserves are securely stored in Switzerland and comply fully with the London Good Delivery standards established by the London Bullion Market Association, a key benchmark for institutional gold custody.
The scale of Tether’s accumulation has also positioned the company among major global gold holders. Based on data from the International Monetary Fund and a Jefferies report published in late 2025, Tether now ranks within the top 30 gold holders worldwide.
Its holdings surpass those of several countries, including Greece, Qatar, and Australia. During the fourth quarter of 2025 alone, Tether Gold Investments added roughly 27 metric tons of gold to its exposure.
Paolo Ardoino, Tether’s CEO, said the company’s growing role in gold markets carries significant responsibility. He emphasized that Tether Gold is designed to bring clarity and verifiability at a time when confidence in traditional monetary systems is being tested.
Ardoino noted that each XAU₮ token represents vaulted physical gold that can be independently verified on‑chain, adding that the product’s rapid growth reflects rising expectations for tokenized assets to meet the same standards as sovereign and institutional reserves.
Featured image from OpenArt, chart from TradingView.com
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Ronaldo Marquez