Tether's gold reserves have surged to an estimated 148 tonnes, surpassing several sovereign nations, according to a report from Wall Street investment bank Jefferies. This rapid accumulation places Tether among the top 30 global holders of bullion and highlights its significant presence in the gold market.

The report notes that Tether's holdings increased as the firm bought approximately 26 tonnes in the last quarter of 2025 and another 6 tonnes in January 2026. This buying activity reportedly outpaced most individual central banks, with only Poland and Brazil buying more gold during the same period. Tether's aggressive strategies in acquiring gold reflect a calculated response to shifting market dynamics and investor sentiment toward more stable assets, particularly as concerns over fiat currencies loom large in the current economic climate.

Tether's reserves, valued at roughly $23 billion, are part of the backing for its U.S. dollar-pegged stablecoin USDT and its gold-backed token XAUT. The dual nature of these holdings indicates a strategic diversification that could appeal to a wide range of investors, from those seeking the stability of gold to those looking for the liquidity provided by a digital stablecoin. Analysts suggest that Tether may hold more gold than officially disclosed, as it operates as a privately held company. The actual figures could represent a minimum estimate of its total exposure, indicating potential undisclosed purchases that could further solidify Tether's standing in the market.

As of the end of January, Tether's XAUT supply had grown to 712,000 tokens, valued at $3.2 billion. The demand for these tokens is driven largely by retail interest from emerging markets, where gold often serves as a reliable store of value amidst economic uncertainty. This trend underscores the increasing global appetite for gold, particularly in regions where currencies are less stable. Furthermore, Tether's gold accumulation comes amid a record-breaking rally in gold prices, which recently topped $5,000 per ounce, fueled by central bank demand and rising government bond yields. The interplay between these factors illustrates the current investment landscape, where traditional assets like gold are gaining traction as a hedge against inflation and currency devaluation.

Looking ahead, Tether CEO Paolo Ardoino mentioned plans to allocate 10%-15% of its investment portfolio to physical gold, reinforcing a strategy developed over several years. With Tether's investment portfolio valued at $20 billion at the end of last year, the firm is positioned to significantly influence the gold market, particularly given the increasing interest in gold as a hedge against dollar reliance. This strategic pivot not only positions Tether as a formidable player in the gold market but also reflects broader trends in investment behavior where assets are being reevaluated in light of economic volatility.

The recent increase in gold purchases showcases Tether's commitment to solidifying its foundational backing for its digital assets. As the gold market continues to fluctuate, Tether's bold moves could set new trends, challenging traditional notions of asset accumulation and presenting new opportunities for investors. The company's ability to leverage the attributes of gold while maintaining liquidity through its stablecoin offerings creates a unique value proposition that may attract institutional and retail investors alike, potentially reshaping their investment strategies.

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Jefferies' estimates reveal that Tether's quarterly gold buying exceeded that of most individual central banks, trailing only Poland and Brazil during that period. This notable performance underscores Tether's strategic advantage in responding to market conditions and investor sentiment. The firm's aggressive accumulation of gold positions it as a significant non-sovereign buyer, a category that includes only a few entities globally. Tether's holdings now exceed those of countries such as Australia, the United Arab Emirates, Qatar, South Korea, and Greece, emphasizing its rapid ascent in the ranks of gold holders.

With the ongoing rally in gold prices, Tether's strategy appears well-timed. The precious metal has surged nearly 50% since September, driven by heightened central bank demand and rising long-term government bond yields. Investors are increasingly looking to gold as a safeguard against economic instability, and Tether's position in the market allows it to capitalize on this growing demand. The company's approach to gold acquisition could serve as a blueprint for other crypto firms and financial entities seeking to diversify their portfolios in response to changing economic conditions.

Tether's proactive stance in accumulating gold also reflects a broader recognition of gold's enduring value as a safe-haven asset. In recent years, many investors have shifted their focus from traditional equities and bonds to alternative assets that provide a hedge against inflation and currency depreciation. Tether's growing gold reserves may encourage other firms and investors to consider similar strategies, further integrating digital currencies with tangible assets like gold.

Ardoino's vision for Tether includes a formalized strategy of investing in physical gold, which has already been in effect for several years. This long-term commitment to gold not only reinforces Tether's liquidity but also enhances its credibility in the eyes of investors seeking reliability in their asset-backed holdings. The firm's gold-backed token, XAUT, is particularly noteworthy as it provides a unique intersection between traditional asset ownership and the benefits of digital currency, appealing to a diverse investor base.

Moreover, Tether's gold buying spree may continue as market conditions evolve. The company's planned allocation of 10%-15% of its investment portfolio to physical gold signals a robust commitment to this asset class. As the firm navigates the complexities of the financial landscape, its strategies may influence how other players approach their asset management and investment decisions.

Tether's strategic investments in gold are emblematic of a shifting landscape where digital currencies are increasingly intertwined with traditional assets, creating a new paradigm for how value is perceived and stored in the modern economy. As the market continues to evolve, Tether's bold moves may inspire confidence and pave the way for a future where digital and tangible assets coexist harmoniously.