Jefferies Report: Tether’s Gold Buying Drives Bullish Trend in Prices

TLDR

• Tether has accumulated 116 tons of gold by the end of Q3 2025, positioning itself as a major global gold holder.
• Jefferies reports that Tether’s gold purchases have played a key role in the recent surge in gold prices, which have risen nearly 60% this year.
• Tether plans to acquire 100 tons of gold in 2025, continuing its strategy of strengthening its gold reserves.
• Tether backs its XAUt token with 12 tons of gold, giving it a market cap of around $1.5 billion and further supporting the gold market.
• Tether has invested over $300 million in gold royalty and streaming companies, reflecting its broader strategy in the gold industry.

Tether has emerged as a major buyer of gold, contributing to the recent surge in gold prices. A new report from Jefferies attributes the rise in gold’s value to Tether’s large-scale gold purchases over the past few months. The investment bank revealed that Tether has accumulated substantial amounts of gold ingots, tightening supply and driving the rally.

Tether’s Role in Gold Price Surge

Jefferies analysts stated that Tether’s activities have played a key role in gold’s price increase. The bank’s report highlighted that Tether accumulated 116 tons of gold by the end of Q3 2025. This figure places Tether among the largest holders of gold globally, rivaling some smaller central banks. Tether’s CEO, Paolo Ardoino, confirmed the company’s intentions to increase its gold reserves, citing plans to acquire 100 tons in 2025.

The bank believes that Tether’s actions have tightened the global supply of gold. As a result, the precious metal has soared nearly 60% this year. Despite a slight decline over the past 30 days, gold has gained 26% over the past six months. Analysts also noted that Tether’s purchases account for a large share of global gold demand.

Tether’s gold holdings are not just limited to physical bullion. The company also backs its XAUt token with gold, offering a gold-backed digital asset. The analysts estimated that XAUt has a market cap of around $1.5 billion, supported by 12 tons of gold. Tether has continuously expanded its gold strategy, adding roughly 26 tons in the third quarter alone, further supporting gold prices.

The growth in Tether’s gold reserves comes amid a growing interest in commodity-backed assets. As Tether continues to expand its gold holdings, it now holds around 7% of its reserves in gold. The bank’s report also suggested that Tether’s projected 2025 profits could lead to further gold accumulation, potentially adding 60 tons to its reserves annually.

Tether Invests $300M in Gold Sector Growth

Beyond physical gold, Tether is also making strategic investments in the gold sector. The company has invested over $300 million in mining royalty and streaming companies this year. This investment points to a broader strategy of diversifying its holdings into the metals industry. Tether also committed $105 million to acquire a 31.9% stake in Elemental Altus Royalties Corp., a Canadian mining firm.

These investments reflect Tether’s strategy to convert crypto profits into commodity assets. By partnering with mining companies, Tether strengthens its presence in the gold ecosystem. The firm’s growing investments in gold-related companies align with its broader push to incorporate gold into its financial model.

Tether’s plans to expand its role in the gold market seem clear. The company is positioning itself as a major player in the global gold market. Tether’s investments in both physical gold and gold-related companies suggest a long-term commitment to this asset class. The continued growth of Tether’s gold-backed assets will likely keep the pressure on gold prices.

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