Bitcoin Updates: Tether's Bold Move into Gold—Balancing Influence and Stability Issues
- Tether , issuer of the world's largest stablecoin, now holds 116 tons of gold ($12.9B), surpassing central banks like South Korea's. - The firm's aggressive gold purchases (26 tons in Q3 2025) and 37.8% stake in a Canadian gold royalty firm signal vertical integration into the gold supply chain. - S&P Global downgraded Tether's USDT stability rating to "weak" due to 7.13% gold and 5.44% Bitcoin exposure, risking reserve coverage if crypto prices drop. - Tether's gold-backed strategy challenges traditiona
Tether, the company behind the world's leading stablecoin, has become the largest private gold holder worldwide, overtaking central banks in countries like South Korea, Hungary, and Greece.
The shift towards gold signals a broader diversification of Tether's reserve assets, with gold now making up 7% of its total holdings, alongside
Nevertheless, this expansion has drawn attention from critics. S&P Global Ratings recently lowered Tether's USDT stability rating from "constrained" to "weak," citing increased exposure to volatile assets like Bitcoin (5.6% of reserves) and gold. The agency cautioned that a drop in Bitcoin or other high-risk assets could weaken reserve coverage, potentially leaving USDT insufficiently backed
The impact goes beyond Tether itself. By becoming a leading gold purchaser, the company has affected both the cryptocurrency and traditional financial markets. Gold's reputation as a safe-haven asset is now linked with digital finance, especially as tokenized gold (XAU₮) gains popularity. Jefferies projects Tether could buy another 100 tons in 2025,
Looking forward, Tether is pursuing a dual strategy—growing its gold and Bitcoin reserves while also preparing to launch a U.S.-compliant stablecoin (USAT) backed by Treasuries—to address regulatory demands and maintain its market lead. While rivals may attempt similar moves, Tether's scale and infrastructure provide a significant head start. For investors, this development
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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