Tether's Gold Rush: The Unlikely Crypto Influence on Bullion Market

Gold's value has surged due to demand from Tether, a major player in the crypto world, now holding 116 tonnes. Its significant purchases influence market dynamics, although U.S. regulations challenge this trend. The intertwining of stablecoins and gold raises concerns over market stability.

Gold's recent record-breaking surge, climbing 56% in 2025, has caught headlines, largely attributed to demand from Tether, the crypto giant. While central banks have traditionally hoarded gold, Tether's purchases have tipped the scales, resulting in the company holding a staggering 116 tonnes of the precious metal.

Despite the U.S.'s GENIUS Act prohibiting the use of gold as a reserve for compliant stablecoins, Tether increased its gold holdings post-legislation. This strategic accumulation signifies an intertwining of the crypto and gold markets, prompting discussions on market volatility and stability.

Jefferies, an investment bank, highlights how Tether's gold acquisitions have potentially tightened supply and shaped market sentiment. As crypto assets grow, their influence on traditional 'safe-haven' commodities like gold suggests an intriguing yet complex convergence of two previously distinct financial spheres.

(With inputs from agencies.)