The stablecoin issuer Tether has quietly grown its physical gold holdings to 116 tons, according to a report by Jefferies. Of this, about 12 tons are allegedly used to back its gold token, Tether Gold (XAU₮). The remaining 104 tons is used to back its main dollar-pegged stablecoin, Tether USDT. While many central banks hold thousands of tons, 116 tons places Tether among small-to-mid-tier official bullion holders across the world.
Earlier in 2025, Tether reported that ‘precious metals’ were part of its reserve categories as per its 30 June 2025 attestation, which included physical gold bars. If we were to put things into context, the World Gold Council estimates that top central bank gold holders hold thousands of tons of gold in their vaults. These include the Federal Reserve and the People’s Bank of China, which hold about 8000 tons and ~2300 tons, respectively.
Other reserves that Tether holds
Beyond gold, Tether also has other assets in its reserve, like Cash and cash equivalents and short-term deposits. Like most stablecoin issuers, it holds U.S. Treasuries and money-market fund exposures. It has also secured loans over-collateralised by liquid assets.
Implications of a private entity holding reserves like a nation-state
Tether’s growing gold reserve signals that it’s evolving into something more like a sovereign reserve manager than a typical stablecoin issuer. Because gold is historically a ‘trust asset,’ the move may enhance confidence in USDT’s backing. At the same time, large private holdings of bullion may tighten supply, impact global gold markets, and attract regulatory scrutiny.