Tether adds 14 tonnes of gold, lifting reserves to $18.8 billion

Tether bought 14 tonnes of physical gold in the second quarter, pushing its bullion holdings past 146 tonnes and rivaling many central banks.

Tether added 14 tonnes of physical gold in the second quarter, lifting its bullion reserves to more than 146 tonnes valued at about $18.8 billion, the stablecoin issuer said Friday.

"Q2 demonstrated the strength of Tether's reserve strategy under real market pressure," Paolo Ardoino, chief executive officer of Tether, said. "We remained one of the world's largest buyers of U.S. Treasuries, reduced secured lending by $2.38 billion, and added 14 tons of physical gold."

The purchase came as spot gold posted its steepest quarterly decline since 2013, falling about 14 percent. Tether's gold now represents roughly 10 percent of its $187.8 billion in reserves, and the 14-tonne purchase equals nearly 5 percent of the 289 tonnes central banks bought in the quarter, according to the World Gold Council.

The accumulation makes Tether one of the largest non-bank, non-sovereign holders of gold globally. JPMorgan's head of precious metals research said Tether's purchases last year exceeded all central banks except Poland's; at 154 tonnes, its holdings would rank among the world's top 20, just behind Brazil's 172 tonnes.

Gold's Growing Share of the Reserve Mix

Tether's gold buying accelerated from 6 tonnes in the first quarter, though it remains below the more than 21 tonnes accumulated in the final quarter of 2025. The company generated $1.5 billion in net operating profit in the second quarter, driven largely by interest income from its U.S. Treasury portfolio and repurchase agreements, even as its reserve buffer — assets above the value needed to back outstanding tokens — fell to $4.11 billion from $8.2 billion at the end of the first quarter.

USDT's circulating supply reached approximately $184.6 billion, holding a market share of about 60 percent of the total stablecoin market, according to DefiLlama data. New USDT issuance of roughly $500 million during the quarter helped fund the expanded gold reserves. Tether's bitcoin holdings fell to $5.8 billion, while precious metals declined to $18.8 billion on mark-to-market losses.

Tokenized Gold Draws Demand

Beyond USDT, Tether issues XAUt, a token fully backed by physical gold with a circulating market value of about $2.4 billion, corresponding to roughly 22 tonnes stored in Swiss vaults. Investor holdings in the tokenized product rose 9.5 percent during the quarter even as spot gold prices fell, according to the company's attestation report. XAUt received Shariah certification from Amanah Advisors in July, a move that could expand access among Islamic financial institutions.

Tether has also moved to monetize its gold holdings. Gold.com, a U.S. precious metals dealer in which Tether holds an equity stake, launched a gold leasing business in February with a minimum size of $100 million; outstanding lease contracts and customer prepayments with Tether totaled $363 million as of March 31.

The sustained buying shows stablecoin issuers emerging as a structural source of demand in the physical gold market. With central banks and crypto companies crowding into the same asset, tight supply could support gold prices over the long term, even as elevated U.S. Treasury yields near 4 percent keep pressure on the metal in the near term.

This article is for informational purposes only and does not constitute investment advice.