The world's largest stablecoin issuer, Tether, has recently made headlines for its aggressive entry into the gold market, emerging as a dominant buyer that now rivals central banks. This strategic pivot signals a deeper play by Tether, potentially positioning itself at the forefront of a projected boom in tokenized gold, reshaping traditional perceptions of digital asset liquidity and value.
Tether's Ascent as a Gold Powerhouse
Tether's gold acquisitions have surged dramatically, particularly in 2025, transforming it into one of the largest gold holders outside of central banks. According to investment bank Jefferies, Tether now boasts approximately 116 tonnes of gold, surpassing the reserves of smaller central banks like Korea, Hungary, and Greece. In Q3 alone, Tether purchased 26 tonnes of gold, outpacing the demand from nations such as Kazakhstan and Brazil. This substantial increase from quarterly demands ranging between 3 to 7 tonnes in 2024 underscores a deliberate and rapid accumulation strategy that has coincided with a nearly 40% rise in gold prices, with some analysts suggesting Tether's demand may have even served as a catalyst for this rally.
The Strategic Bet on Tokenized Gold
This significant gold accumulation by Tether appears to be a calculated move to capitalize on the burgeoning market for tokenized gold. Experts suggest that Tether is betting on tokenized gold going mainstream, much like stablecoins have, and is strategically positioning its offerings, such as Tether Gold (XAUT). Tokenized gold products offer a compelling alternative for retail investors who often face high fees and minimum investment requirements associated with traditional gold ETFs. The flexibility and accessibility of on-chain gold versions like XAUT and Pax Gold (PAXG) have driven a remarkable expansion in their market supply, reaching a record high of $3.9 billion and rivalling stablecoins in inflows during the second half of the year. While the momentum for tokenized gold is clear, its continued growth and mainstream adoption will ultimately hinge on regulatory clarity from bodies like the SEC regarding tokenized markets.
