Tether's Bold Bet: Crypto Meets Gold

The surge in gold prices in 2025 is attributed to crypto giant Tether's substantial purchasing. Tether has become one of the largest holders of gold, overshadowing central banks. This intertwining of crypto and gold raises questions about the stability and nature of gold as a safe-haven asset.

Tether, one of the largest players in the crypto market, has become a significant buyer of gold this year, contributing to a 56% surge in its price in 2025. This trend raises questions about gold's status as a traditional safe-haven asset, given Tether's speculative nature.

Jefferies reports that Tether's gold acquisitions now exceed those of central banks. By September 30, Tether held 116 tonnes of gold, equating to about $14 billion. This positions Tether as one of the largest non-central bank gold holders, paralleling countries like South Korea and Hungary.

Despite the recent regulatory changes posed by the GENIUS Act, which limits stablecoin reserve assets, Tether persists in its gold purchases. The ongoing intertwining of crypto and gold sectors suggests a shift in their respective market dynamics.

(With inputs from agencies.)