The purchase, announced by Tether on 26/1, matches the volume from the previous quarter. Analysts estimate Tether bought 26 tons of gold in Q3 2025.
Tether is a significant driver of gold demand, actively acquiring the precious metal to back its stablecoins, USDT and XAUT. Stablecoins are digital currencies built on blockchain technology, designed to maintain a stable value by being pegged to a reference asset.
One USDT is equivalent to one US dollar, while XAUT's value is pegged to one ounce of gold. The total value of USDT tokens in circulation stands at 187 billion USD, with XAUT tokens valued at 2,7 billion USD.
 |
USDT, issued by Tether, is currently the world's largest stablecoin. Photo: Reuters |
"We are operating at a scale that makes the Tether Gold Investment Fund comparable to national gold funds", stated Tether CEO Paolo Ardoino. He cited the Central Bank of Poland as an example, noting it was the most active buyer among central banks, acquiring an additional 35 tons last quarter to bring its total gold reserves to 550 tons.
Tether did not disclose its total gold holdings in Switzerland. However, as of the end of 12/2025, Tether held 16,2 tons of gold specifically backing XAUT, which is fully backed by gold.
In its Q3 2025-end reserve report, Tether indicated that USDT had 12,9 billion USD in gold backing, equivalent to 104 tons at that time. Despite this, USDT's reserves primarily consist of US government bonds, with gold making up only 7% of the total.
Each USDT is backed by one US dollar in reserves. When a user deposits one US dollar, Tether issues one USDT and holds equivalent assets, such as US treasury bonds. These reserves ensure the ability to convert to US dollars when needed.
Year-to-date, global gold prices have climbed 18%, briefly surpassing 5,100 USD during the 26/1 trading session. Last year, prices surged 64%, driven by safe-haven demand, US monetary policy easing, central bank purchases (particularly by Trung Quoc), and record investment in ETF funds.
Ha Thu (according to Reuters)
