Tether Eyes Bigger Gold Holdings, Plans Expansion Beyond $8.7B Reserves

Tether, the issuer of the world’s largest stablecoin USDT, is set to expand its gold reserves beyond the current $8.7 billion, according to a Financial Times report on September 5, 2025. The company, holding 80 metric tons of gold in a private Zurich vault, is in talks to invest in gold mining, refining, trading, and royalty firms to bolster its reserves, which back its $168 billion USDT and $880 million XAUt tokens. This move aims to enhance stability and hedge against fiat volatility, per CEO Paolo Ardoino’s remarks at the Bitcoin 2025 conference.

Tether’s strategy includes a $105 million stake in Elemental Altus Royalties Corp and discussions with Terranova Resources, signaling deeper integration into the gold supply chain. Gold, comprising 5% of Tether’s $112 billion reserve portfolio, complements its $102.5 billion in U.S. Treasuries, as noted in its Q3 2024 attestation. Ardoino emphasized gold’s safe-haven status amid rising U.S. debt and geopolitical tensions, with prices up 25% in 2025, per Bloomberg.

This expansion could boost investor confidence in USDT, reinforcing its 62% share of the $255 billion stablecoin market. However, regulatory hurdles loom, as U.S. and EU laws may restrict gold-backed reserves, potentially forcing divestitures, per AiCoin. The move also links crypto and traditional markets, potentially impacting gold demand.

Tether’s gold strategy underscores its commitment to transparency and stability, positioning it as a leader in digital finance. Investors and regulators will closely watch how this shapes the stablecoin ecosystem.