Tether, the company behind the world's largest stablecoin USDT, has revealed a substantial expansion of its gold holdings, underscoring a growing shift toward tangible asset backing amid uncertainty in crypto and traditional financial markets.
Tether Expands Stablecoin Reserves Backed by Gold
Gold crossed the threshold of $5,000 per ounce for the first time on Monday, a milestone that market observers had not seen before. Prices briefly rose to around $5,110 per ounce as demand for safe haven accelerated.
Tether revealed that it significantly increased its exposure to gold during the fourth quarter of 2025. The company reported that gold-backed stablecoins (XAU₮) experienced rapid growth throughout the year, with a total market capitalization increasing from approximately $1.3 billion to over $4 billion.
According to Tether's verification report, this expansion was due to record gold prices, increasing geopolitical fragmentation, and a growing demand for fully on-chain safe-haven assets from institutional investors and native cryptocurrency users.
In the gold-backed stablecoin sector, Tether Gold has emerged as the dominant issuer, accounting for approximately 60% of the total circulating supply.
At the end of the fourth quarter, total physical gold reserves amounted to 520,089.350 troy ounces of fine gold. Each token is backed on a one-to-one basis by a troy ounce of physical gold. At current prices, the total market value of these holdings reached approximately $2.25 billion.
The Cryptocurrency Giant Ranks Among the Top 30 Gold Holders Worldwide
Tether confirmed that all gold reserves are securely stored in Switzerland and fully comply with the London 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 the world's major gold holders. According to data from the International Monetary Fund and a report by Jefferies published in late 2025, Tether is now ranked among the top 30 gold holders globally.
Its holdings surpass those of several countries, including Greece, Qatar, and Australia. In the fourth quarter of 2025 alone, Tether's gold investments added approximately 27 metric tons of gold to its exposure.
Paolo Ardoino, CEO of Tether, said that the company's growing role in gold markets carries significant responsibility. He emphasized that Tether Gold is designed to provide clarity and verifiability at a time when confidence in traditional monetary systems is being tested.
Ardoino noted that each XAU₮ token represents physical gold in a vault that can be independently verified on-chain and added that the rapid growth of the product reflects the increasing expectations that tokenized assets meet the same standards as sovereign and institutional funds.