Jefferies analysts led by Fahad Tariq identified the three-ton decrease in their recent report, noting that gold backing the USDT stablecoin fell to 142.8 tons. Holdings for the XAUT digital token remained steady at 22 tons. While this marks the first quarterly decline for the issuer, experts emphasize that Tether’s broader appetite for physical bullion remains intact. The company’s gold reserves have nearly doubled since June 2025, and the latest adjustment did not stem from a drop in stablecoin issuance.
Tether Trims Gold Reserves as Analysts Watch for Market Shifts
Tether reported a decline in its physical gold holdings during the third quarter, dropping to 165 metric tons from 168 tons in June. Despite this reduction, analysts view the move as a temporary fluctuation rather than a retreat from the company’s aggressive strategy of accumulating precious metal assets.
Société Générale analysts characterize Tether as a hybrid entity, functioning simultaneously like a central bank and an exchange-traded fund. Since early 2023, Tether’s gold holdings have grown at an annualized rate of 31%, significantly outpacing the 1.8% growth rate seen in central bank reserves. While tokenized gold markets remain a smaller segment of the global trade, their rapid expansion and high turnover rates suggest a fundamental shift in how bullion is held and traded. Tether CEO Paolo Ardoino continues to target a 10% to 15% allocation of the firm's private investment portfolio toward physical gold, a strategy that remains unchanged despite the recent quarterly dip.
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