Tether’s Gold Hoard Surpasses $23 Billion, Elevating It to Top 30 Global Holders

In a remarkable display of strategic asset accumulation, Tether, the issuer of the world’s largest stablecoin USDT, has rapidly escalated its gold reserves, now exceeding an astounding $23 billion. This aggressive “gold rush” has propelled Tether into the exclusive ranks of the world’s top 30 gold holders, outperforming numerous sovereign nations, according to a recent report by Wall Street investment bank Jefferies.

A Rapid Ascent in Gold Holdings

Jefferies analysts estimate that as of January 31st, Tether’s gold reserves have reached approximately 148 metric tons, valued at roughly $23 billion. This significant increase is largely due to a “frenzied buying” spree in recent months. The company reportedly acquired around 26 tons of gold in Q4 of the preceding year, followed by an additional 6 tons in January alone, demonstrating a rapid expansion of its gold portfolio.

The report highlights that Tether’s quarterly gold purchases have, in terms of volume, outstripped those of most national central banks. Its buying power during this period was only surpassed by Poland and Brazil, underscoring the scale of its ambition and market impact.

Outperforming Sovereign States

At its current level of accumulation, Tether’s gold holdings now exceed those of several prominent countries, including Australia, the United Arab Emirates, Qatar, South Korea, and Greece. This positions Tether not only as a formidable player among global gold holders but also as one of the few non-state entities capable of rivaling sovereign nations in the precious metals market.

Strategic Backing for Digital Assets

These substantial gold reserves serve as crucial backing for two of Tether’s key products: its flagship USD-pegged stablecoin, USDT, and its gold-backed token, Tether Gold (XAUT). While the reported 148 tons are a significant figure, Jefferies analysts suggest that Tether’s actual gold holdings could potentially be higher than publicly disclosed. As a privately held company, Tether’s financial transparency differs from that of publicly traded corporations, with reported figures often representing a minimum valuation. This leaves open the possibility of additional, undisclosed gold positions on its balance sheet.

Specifically, USDT’s Q4 last year reserve attestation report indicated that approximately $17 billion of Tether’s reserves were allocated to gold by year-end, translating to about 126 tons at prevailing market prices. By the end of January, the supply of XAUT had grown to 712,000 tokens, valued at $3.2 billion, which corresponds to an additional 6 tons of gold bolstering the token’s backing.

Riding the Gold Bull Market

Tether’s aggressive gold acquisition strategy coincides with a period of historic performance in the gold market. Last month, gold prices surged to record levels, experiencing an increase of nearly 50% since September of the previous year. This robust “gold bull market” has been fueled by several factors, including strong demand from global central banks, rising long-term government bond yields, and a growing investor appetite for “de-dollarization” safe havens.

A Continued “Gold Hoarding Frenzy” Expected

Jefferies anticipates that Tether’s significant gold accumulation is likely to continue. Tether CEO Paolo Ardoino has previously articulated the company’s intention to consistently allocate 10% to 15% of its investment portfolio to physical gold. As of the end of last year, Tether’s overall investment portfolio was estimated to be around $20 billion, indicating a sustained commitment to diversifying its reserves with the precious metal.