Jefferies said stablecoin issuer Tether had bought significant amounts of gold in recent months, reducing supply and weighing on sentiment.
The bank estimated that the stablecoin issuer now holds at least 116 tonnes, making it among the world’s largest holders of gold outside of central banks.
Continued USDT growth, rising profits and Tether’s pro-gold stance could continue buying at a high level, the report said.
Investment bank Jefferies said the recent rise in gold prices cannot be explained by traditional drivers alone and instead points to Tether as the main new buyer.
Attestation and on-chain activity data show the stablecoin issuer has accumulated significant amounts of gold in gold in recent months, reducing supply and helping fuel sharp growth, the bank said in a Thursday report.
The precious metal is up more than 50% this year and currently trades around $4,080 an ounce.
Jefferies first flagged Tether’s interest after the firm met with miners and royalty management firms in Denver last fall, and investors told the bank that Tether intended to buy about 100 tons this year. CEO Paolo Ardoino’s public comments about adding gold to reserves and the $1,000-per-ounce price jump bolstered those claims.
Analysts led by Andrew Moss estimated that Tether held at least 116 tons of gold at the end of the third quarter, with 12 tons backing its token XAUt (worth about $1.57 billion) and about 104 tons backing USDT (worth about $13.67 billion), making it the world’s largest holder of non-government securities and putting it on par with smaller central banks. According to CoinMarketCap, XAUt’s market cap is currently around $1.5 billion.
What stands out is the pace of accumulation – roughly 26 tonnes in the third quarter alone, which equates to around 2% of global demand, analysts said, SEEbiz reports. While it wasn’t enough to overwhelm central bank flows, the buying likely reduced short-term supply and fueled bullish sentiment.
Tether is expected to continue to accumulate as USDT rises, with gold remaining around 7% of reserves, the report said. With Ardoa projecting profits of $15 billion in 2025, the bank’s analysts calculated that even investing half that amount in gold bullion could add nearly 60 tons a year.
Tether’s planned GENIUS Act-compliant stablecoin USAT will not require gold reserves, leaving its long-term impact on USDT and gold demand uncertain, the report said.
Analysts also cited Tether’s growing investments in the gold ecosystem, including more than $300 million invested in copyright and streaming companies this year. The bank considers these stakes as further evidence of a broader metals strategy. The recent hiring of two of HSBC’s top metals traders suggests that Tether’s push into gold is accelerating, not slowing down.
