Bitcoin News Today: Tether's Gold Reserves Challenge U.S. Rules, Fuel 50% Rally in Gold Prices

Tether, the issuer of the world's largest stablecoin USDT, has emerged as the largest independent gold holder globally, surpassing the reserves of several central banks. As of Q3 2025, the company holds approximately 116 tons of gold, valued at $12.9 billion, according to data from Jefferies and Tether's own attestation reports. This rapid accumulation, which saw the firm acquire 26 tons of gold in the third quarter alone-accounting for 2% of global demand- has positioned Tether as a key player in the gold market, rivaling the reserves of smaller central banks such as those in South Korea, Hungary, and Greece. The move reflects a strategic pivot toward tangible asset diversification, with gold now representing roughly 7% of Tether's total reserves according to analysis.

The surge in gold holdings is part of a broader shift in stablecoin reserve management, traditionally dominated by cash and short-term Treasuries. Tether's aggressive acquisition of gold, coupled with its $9.9 billion in Bitcoin reserves, has drawn both praise and scrutiny. While proponents argue that gold serves as a hedge against macroeconomic instability and inflation, critics highlight the risks of holding non-liquid assets in a sector requiring high liquidity. The U.S. GENIUS Act, enacted in July 2025, mandates that stablecoin issuers back tokens 100% with "high-quality liquid assets," rendering Tether's gold and Bitcoin holdings non-compliant in the U.S. market. In response, Tether plans to launch a new stablecoin, USAT, specifically for U.S. operations, which will not be gold-backed.

The impact of Tether's gold strategy is already evident in the physical gold market. Analysts from Jefferies attribute a significant portion of the 50% year-to-date rally in gold prices to Tether's sustained demand, which has tightened short-term supply and bolstered bullish sentiment. The firm's gold-backed token, XAU₮, has also gained traction, with its market capitalization doubling to $2.1 billion by Q3 2025. Tether's influence extends beyond direct purchases; it has invested over $300 million in gold royalty companies and hired former HSBC metals traders, signaling a long-term commitment to the commodity.

However, the firm's reliance on high-risk assets has drawn criticism from ratings agencies. S&P Global downgraded Tether's ability to maintain its dollar peg to "weak" in November 2025, citing the increased exposure to gold, Bitcoin, and other non-liquid assets, as well as limited transparency in reserve management. The agency noted that Bitcoin's 5.6% share of Tether's reserves now exceeds its overcollateralization margin, leaving the stablecoin vulnerable to undercollateralization if asset values decline. Tether's spokesperson has defended the company's strategy, emphasizing its role as a "borderless central bank" with diversified reserves to withstand macroeconomic shocks.

Looking ahead, Tether's gold strategy could reshape the stablecoin landscape. While the launch of USAT may reduce its reliance on gold in the U.S., the firm's broader vision of integrating real-world assets into digital finance could drive innovation in tokenized commodities. The success of this approach, however, will depend on regulatory alignment, robust audits, and continued market confidence. For now, Tether's unprecedented gold holdings underscore its growing influence in both crypto and traditional markets, challenging conventional notions of reserve management and asset-backed digital currencies.