Tether's gold holdings increased to 116 tons, matching that of small Central Banks, and the tokenization of the gold market is receiving attention.

Tether has recently doubled its holdings in gold, attracting market attention. Analysts believe this could be a strategic move to lay out a tokenization plan for the gold market, aimed at meeting the rise in demand for the USDT stablecoin and Tether Gold (XAUT).

By 2025, Tether's treasury will hold approximately 116 tons of gold, most of which was purchased this year, and its reserve scale can rival that of small central banks like South Korea. According to the Financial Times, Tether purchased 26 tons of gold in the third quarter, surpassing the demand of the central banks of Kazakhstan and Brazil during the same period. Investment bank Jefferies pointed out that, aside from central banks, Tether is the largest holder of gold in the world, with gold reserves “roughly equivalent to smaller central banks such as those of South Korea, Hungary, and Greece.”

The demand for Tether's gold has significantly increased. In 2024, its net demand for gold is about 3 to 7 tons per quarter, while in the second quarter of 2025, it surged to 23.5 tons, and in the third quarter, it further rose to 25.9 tons. During the same period, gold prices increased by nearly 40%, rising from $3000 per ounce to $4300 per ounce. Jefferies analysis believes that Tether's purchasing behavior has become a new source of demand in the gold market, which may drive up gold prices, and bets that tokenization of gold will gain mainstream recognition like stablecoins.

In addition, tokenization of gold is more attractive to retail investors because traditional gold ETFs have high fees and minimum investment limits. The market supply of on-chain gold, such as Tether Gold and Pax Gold (PAXG), is set to reach record levels in the second half of 2025, increasing from less than $1 billion to $2 billion and $1.3 billion respectively, with capital inflows comparable to stablecoins, indicating a growing market acceptance.

However, analysts point out that whether future growth can be sustained still depends on the clarity and enforcement of the U.S. Securities and Exchange Commission (SEC) regulations regarding the tokenization of the gold market. Tether's significant increase in holdings not only reflects its strategic layout but also reflects the potential and investment enthusiasm of the on-chain gold market. (AMBCrypto)