Gold: A Timeless Asset
Gold has long served as a symbol of safety and stability, providing a hedge during turbulent market conditions. In the past, rulers amassed gold to showcase power, and later, central banks began accumulating it to protect their economies from various crises. Recently, however, a private entity—Tether, a major player in the crypto space—has taken to buying gold in substantial quantities, shifting the dynamics of global demand.
Tether’s Surprising Shift
Tether Holdings SA is now a dominant force in the physical gold market, buying vast amounts and storing them in a “James Bond-style” nuclear bunker located in a Swiss mountain, according to CEO Paolo Ardoino. In a remarkable turn of events, Tether is purchasing more gold than entire countries, claiming nearly two tonnes each week.
The Crypto Giant’s Gold Hoard
Founded in 2014, Tether is the world’s largest cryptocurrency platform, known for its stablecoin, USDT, which is pegged to traditional currency values. By 2025, Tether had accumulated 142 tonnes of gold worth approximately $20 billion, and by early 2026, this figure had risen to around 148 tonnes, valued at over $23 billion. With the firm now outpacing many central banks in gold purchases, it’s clear Tether is reshaping market dynamics.
Significant Financial Gains
Tether has benefited immensely from the recent surge in gold prices, reporting gains exceeding $5 billion on its holdings. The company’s stockpile has appreciated significantly as gold prices rose, from around $3,858 to over $5,200 per ounce. Consequently, Tether’s valuation has soared, presenting it as a major player in the financial landscape.
Strategic Moves in Gold Acquisition
The question remains: why is a crypto company investing heavily in gold? For Tether, it’s a blend of strategy and risk management. The stablecoin issuer has introduced Tether Gold (XAU₮), where each token is backed by physical gold. Increased demand for these tokens compels Tether to acquire more gold to maintain this backing and cater to investor preferences, particularly in inflation-prone economies.
Investments and Diversification
In light of the current economic climate, Tether is diversifying its portfolio beyond traditional assets. Aiming to allocate 10% to 15% of its investment portfolio to physical gold, the firm is bolstered by substantial profits from US Treasury holdings, enhancing its position in the gold sector as a safeguard against potential economic downturns.
The Evolving Landscape of Gold Demand
Traditionally, gold demand was driven by central banks, jewelers, and commodity investors. However, this dynamic is shifting. Private sectors, sovereign wealth funds, and stablecoin issuers are increasingly vying for gold. Tether’s ongoing purchases highlight this new trend, with plans to maintain its aggressive buying spree, indicating a growing non-state influence reshaping the global gold market.
