Tether, the world's largest stablecoin issuer, has significantly ramped up its gold acquisitions, reflecting a broader trend of increased interest in safe-haven assets amidst global economic uncertainty. This strategic move solidifies its position in the rapidly expanding tokenized gold market, even as new competitors begin to challenge its dominance.
Tether's Aggressive Gold Strategy Amidst Market Surge
In a strategic move mirroring central bank activity, Tether dramatically increased its gold reserves, acquiring 27 metric tons in Q4 2025 alone, consistent with its Q3 purchases. This aggressive accumulation coincides with an explosive rally in physical gold, which saw a 64% gain in 2025 and continued its ascent into 2026, crossing the unprecedented $5000 mark. The firm leverages these substantial gold holdings to back its XAUT token on a 1:1 basis, leading to a remarkable three-fold increase in XAUT's market supply, reaching $1.8 billion by the end of 2025 and $2.24 billion in early 2026. Tether CEO Paolo Ardoino highlighted the significance of this scale, positioning Tether Gold alongside sovereign gold holders and emphasizing its role in providing clarity as traditional monetary systems face mounting pressure.
Shifting Dynamics in the Tokenized Gold Market
Despite the impressive growth of its XAUT supply and the overall tokenized gold market surpassing $5.2 billion, Tether Gold has experienced a notable shift in its market dominance. Its share has decreased by nearly 10%, falling from approximately 60% in November 2025 to 50% in early 2026. This contraction is largely attributed to the emergence of new players, particularly Kinesis Gold, which rapidly captured nearly 8% of the market share from a standing start. While Pax Gold maintains its position as the second-largest tokenized gold provider with a 40% share, the evolving competitive landscape suggests a maturing market where innovation and new offerings are actively reshaping participant shares, especially as geopolitical tensions continue to fuel demand for physical gold and its digital counterparts.
