Why is Tether Buying More Gold Than Entire Countries?

Key Takeaways

Tether is the largest non-central bank buyer of gold globally.
Its gold holdings now rival those of South Korea, Hungary, and Greece.
Why is Tether buying so much Gold even though it is a stablecoin issuer?

Tether’s aggressive gold accumulation has crossed a historic line.

The world’s biggest stablecoin issuer is now the largest non-central bank gold buyer on the planet.

With more than 116 tonnes of gold, rising tokenized gold demand, and deepening ties to U.S. government officials, Tether is positioning itself at the center of a financial realignment.

Its buying spree has left investors asking the same question: Why is Tether buying gold at such an aggressive pace despite being a stablecoin issuer?

Why is Tether Buying Gold?

Despite being a stablecoin issuer, Tether has been aggressively accumulating gold.

Based on its 116 tonnes of gold, Tether is the largest non-central bank gold holder globally.

Gold Purchases Quarter — Tether Gold Purchases | Credit: X

Tether’s gold strategy appears increasingly intertwined with Cantor Fitzgerald, whose leadership signals a more profound institutional shift.

As blockchain analyst Jack noted,

Howard Lutnick — whose sons now run Cantor and whose firm manages Tether’s treasuries — also chairs the White House Commerce Department, placing him at the intersection of U.S. policy, Tether, and major capital markets.

Tether’s gold accumulation is not happening in isolation. Behind the scenes, powerful institutions closely tied to U.S. policy are shaping this strategy.

Is the U.S. Selling Gold Reserves?

By refinancing old gold certificates or gradually selling U.S. gold, the government can acquire Bitcoin in a budget-neutral way.

Another possibility is to sell portions of US gold reserves quietly at first, then publicly, and use those proceeds to build a national Bitcoin position.

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S&P Downgrades Tether

Tether is a stablecoin designed to maintain a value of $1. Still, its reserves now include volatile assets such as Bitcoin and gold.

This raises questions about the security of USDT, as its riskier assets exceed its safety buffer, and its disclosures remain limited.

Despite massive profits and becoming one of the world’s largest non-central-bank gold holders, S&P downgraded Tether to its weakest rating.

Tether, “The Stable Company” just saw S&P cut its assessment rating from 4 to 5 – the lowest rating possible – citing persistent gaps in disclosure and high risk assets being held in its reserves.

Only in crypto would the bedrock stablecoin of crypto trading be viewed as so… pic.twitter.com/fYIplOCMS6

— Novacula Occami (@OccamiCrypto) November 26, 2025

Only in crypto could the most widely used stablecoin be rated as high risk.

Tether’s CEO, Paolo Ardoino, defiantly told the S&P that “we wear your loathing with pride”.

The traditional finance propaganda machine is growing worried when any company tries to defy the force of gravity of the broken financial system. No company should dare to decouple itself from it.

Ardoino also stated that Tether is living proof that the financial system is so broken that “it’s becoming feared by the emperors with no clothes”.

Despite the criticism, Tether continues to expand its reserves and its role in global markets.

Tokenized Gold Surges

Another factor in Tether’s decision to buy gold is the explosive growth of tokenized gold.

Data from Token Terminal shows that the tokenized gold market is valued at $3.6 billion, representing a 50-fold increase since 2021.

The two biggest players are Tether’s XAUT and Paxos’ PAXG.

As demand for its XAUT product increases, Tether must simultaneously increase its actual Gold reserves.

Despite the surge in demand, the tokenized gold market, valued at $3.6 billion, is a tiny fraction of the $28.7 trillion physical gold market.

This stark difference in size highlights the significant room for growth in the future.

Why is Gold’s Price Going Up?

Gold’s price crashed by 11% after its all-time high of $4,381 on Oct. 20

The gold price bounced afterward and is gradually recovering some of its losses.

While the gains are positive, the price structure is not.

Gold trades within an ascending parallel channel, suggesting that a potential breakdown is likely.

Gold Price Movement — GOLD Daily Chart | Credit: Valdrin Tahiri/TradingView

Adding to the bearish picture, the movement inside the channel shows A-B-C increases and five-wave decreases.

This means that the trend is bearish, and bounces are considered corrective.

As a result, traders are closely watching the channel’s midline to see if it might give a rejection.

What This Means Going Forward

Tether’s transformation into the largest non-central bank holder of gold signals a shift in how global reserves are built.

The explosive rise of tokenized gold, Cantor Fitzgerald’s role in managing Tether’s assets, and the growing overlap between US policy and crypto-backed financial rails all point toward a hybrid system where gold, Bitcoin, and stablecoins coexist as reserve pillars.

This entire shift explains why Tether is buying gold at a scale large enough to challenge nations and unsettle traditional finance.

Tether Becomes Largest Gold Holder as Gold Prices Break $4150