Tether has amassed a substantial gold inventory totaling 116 tons, rivaling that of central banks from countries like South Korea, Hungary, and Greece. According to a recent analysis from Jefferies, Tether’s aggressive acquisition strategy—with purchases representing nearly 2% of the global gold demand last quarter—may be affecting short-term market attitudes.

Jefferies described Tether as the largest private holder of gold outside of central banks and conveyed that their aggressive buying might have tightened market supply recently, influencing investor sentiment towards gold.

Furthermore, analysts have indicated that Tether plans to obtain an additional 100 tons of gold in 2025, with reported profits reaching $15 billion for the year, making this target feasible.

Tether Strengthens Its Gold Focus

Over the current year, Tether has invested over $300 million in acquiring interests in precious metals companies; notably, they recently bought a 32% stake in Canada’s Elemental Altus Royalties.

Recent reports mention Tether’s exploration into investments across the entirety of the gold supply chain, from mining to refining and trading, reflecting a calculated strategy to diversify their asset reserves.

Additionally, Tether’s Gold-backed token (XAUt), supported by gold stored in a Swiss vault, has seen a doubling in issuance over six months, culminating in an increase of approximately 275,000 ounces (equating to about $1.1 billion) since last August.

Jefferies predicts that Tether is positioning itself to leverage tokenized gold, which aims to dissolve the cumbersome challenges of physical gold ownership and the costs associated with futures and ETFs.

In essence, Tether’s operations increasingly resemble those typically associated with central banks, as it engages in behaviors like minting tokens directly for verified clients and managing substantial reserve portfolios featuring US Treasurys, gold, and Bitcoin.