USDT issuer Tether becomes the largest independent holder of Gold
Tether, the company behind USDT, has quietly become the world’s largest independent holder of gold, now sitting on nearly $8.7 billion worth of the precious metal. For a company that has faced repeated scrutiny over the backing of its stablecoin, this development may offer a measure of reassurance to USDT users.
Is Tether betting big on gold?
With gold in a strong uptrend, Tether’s massive accumulation suggests the company sees the metal as a superior store of value. Its current gold reserves are now comparable to those held by entire nations, including South Korea, Hungary, and Greece. A Financial Times report notes that Tether’s purchases in recent months have surpassed those of large buyers such as Kazakhstan, Brazil, Turkey, and even China.
Some analysts believe Tether’s aggressive buying has contributed to gold’s surge. The metal reached an all-time high of $4,379 in October 2025, a move likely fueled by investors seeking safety amid broad macroeconomic uncertainty.
Investor sentiment could shift soon
Market dynamics may soon change, however. Expectations for another U.S. interest rate cut in December are rising. According to the CME FedWatch tool, there is now an 84.9% probability of a 25-basis-point rate cut next month.
Lower rates often push investors out of safe-haven assets like gold and back into higher-risk markets—including cryptocurrencies. If the Federal Reserve follows through with a cut, capital could start rotating away from gold and into riskier plays.Marex analyst Edward Meir noted, “The focus has shifted away from the dollar and towards a decrease in interest rates in December.” He added that growing expectations of a rate cut have been supporting gold’s price recently. Meir also pointed to speculation surrounding a potential leadership change at the Federal Reserve, saying, “There’s talk they might nominate a new Fed chairman soon, with Kevin Hassett from the president’s Economic Advisory Committee seen as the frontrunner.”
