Tether Rivals Central Banks as Gold Buying Accelerates in 2025

In Brief

• Tether added 116 tons of gold in 2025, rivaling central bank buying activity.
• Stablecoin profits from $187B USDT supply funded large-scale bullion purchases.
• XAUT now controls about 60% of the global gold-backed stablecoin market.

Tether has emerged as one of the world’s most aggressive gold buyers as it rapidly expands physical bullion reserves. The stablecoin issuer converted stablecoin profits into gold at a scale comparable to sovereign institutions.

As a result, private capital increasingly rivalled central bank demand throughout 2025.

Tether Expands Gold Reserves Using Stablecoin Profits

During Q4 2025, Tether added roughly 27 metric tons of gold to its reserves. This pace closely matched its Q3 accumulation of about 26 tons. Across the full year, analysts estimated total purchases at 116 metric tons.

Market observers indicated Tether likely ranked among the top three global gold buyers for multiple quarters. In several periods, its purchases exceeded those of individual central banks.

The company funded purchases using profits generated from backing its USDT stablecoin. These profits primarily came from interest-bearing assets such as U.S. Treasury bills. With roughly $187 billion of USDT in circulation, yield generation scaled quickly.

Unlike central banks, Tether’s accumulation strategy focused on reserve diversification rather than monetary policy. However, its buying activity added pressure to an already tight bullion market. As a result, private issuers increasingly influenced gold flows.

Tokenized Gold Growth Strengthens Market Presence

Tether’s gold strategy is closely tied to its tokenized gold product, XAUT. XAUT accounted for about 60% of the global gold-backed stablecoin market. That market expanded from roughly $1.3 billion to over $4 billion in 2025.