- Tether bought $26 billion worth of Gold from the market, more than all central banks.
- The purchase could signal a strategic pivot away from US Treasuries and the US Dollar, which back most of Tether’s stablecoins.
- A second reason could be the recent downgrade of Tether’s stock by S&P, a standard benchmarking system on Wall Street.
- The purchase could also mean Tether foraying into other markets, such as Europe and Asia.
Tether Buys Record Gold in Q3, 2025
A report by Financial Times indicates that Tether has bought around $26 tonnes of Gold in Q3 of 2025. The purchase is higher than any other central bank. All central banks, including the US Federal Reserve. The second-highest purchase was by Kazakhstan, followed by Brazil and Turkey. China came in at the 7th spot with 5 tonnes of Gold purchases in Q3.
What does This Purchase Signify?
The gold purchases exceed Tether’s XAU market cap ($1.5 billion). XAU is a gold-backed stablecoin. The move clearly indicates that the purchases are strategic rather than operational, supporting the XAU coin.
Pivoting Away from the US Dollar and Treasuries
The US Dollar is in a precarious state, with a record $36 trillion in debt, and the US Government is planning to print more dollars. By the end of the decade, economists expect significant erosion in the US Dollar’s buying power.
Since Tether stores most of its money in US dollars, US Treasuries, and USD-denominated bonds, it could be one of the largest losers of wealth if it continues with Gold Reserves.
Entering New Markets
Tether has been preparing to enter Europe and Asian countries with their individual fiat-backed stablecoins. For that to happen, it has to pivot away from excessive Dollar reserves held by its treasury. Several European countries have been wary about
Responding to S&P Downgrade
The S&P has downgraded Tether due to alleged transparency issues regarding its reserves. The downgrade is expected to affect Tether’s stock, as S&P ratings have been a benchmark in global markets.
The gold purchase could be a move to diversify away from the current asset pool, which consists solely of US dollars and dollar equivalents.
Tether vs Other Stablecoins in Q4, 2025
Tether has been one of the most dominant players in the stablecoin market since the USDC crisis at Silicon Valley Bank. Currently, Tether has around
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
