Tether’s Move to Acquire Gold as a Shield Against Dollar Fluctuations Transforms the International Bullion Market

Tether's Gold Holdings Climb to 116 Tons, Challenging Smaller Central Banks

The stablecoin provider

has accumulated a gold stockpile totaling 116 tons, making it one of the largest private holders of gold worldwide, . The company’s rapid acquisition—adding 26 tons in just the third quarter—has drawn parallels with smaller national banks and is influencing the global gold market landscape. Tether’s approach—focused on diversifying its assets and protecting against fluctuations in the U.S. dollar—could further restrict gold availability and boost bullish market sentiment.

Tether’s aggressive gold purchases are part of a wider metals investment plan, which also includes stakes in royalty and streaming businesses,

this year. The company has additionally from firms such as HSBC, signaling a stronger move into the physical gold sector. Meanwhile, , expanding Tether’s presence in the industry.

The effect on gold pricing is significant.

that Tether’s acquisitions represent about 2% of the world’s gold demand, a large enough share to impact short-term supply. This fits with broader market movements: that central banks tripled their gold purchases to 64 tons in September, with China increasing its reserves by 15 tons. Tether’s buying, however, , as its gold assets now compete with those of smaller central banks.

Tether’s combined emphasis on gold and , describing the approach as a “hybrid reserve model” to counteract dollar volatility. such as and the soon-to-launch XAUt token, Tether seeks to reinforce the long-term reliability of its crypto assets. However, , USAT, which will not be backed by gold, introduces questions about the ongoing need for physical gold reserves.

The heightened demand for gold extends beyond large institutions.

in October, fueled by festival and wedding season purchases. While Tether’s activity differs from consumer buying, it highlights a worldwide trend of turning to gold as a safe haven during economic instability.

Both critics and market watchers are paying close attention.

, may increase further as USDT usage rises. Still, of its gold-backed coins continue to prompt concerns about openness and regulatory oversight.