How Tether Became the Largest Buyer of Gold – Defying Its Own Crypto Narrative

Tether has emerged as a massive purchaser of physical gold, buying 26 tonnes in the third quarter, surpassing every central bank and bringing its total holdings to about 116 tonnes, valued around $14 billion. This gold backs both its USDT stablecoin and its tokenized gold product, XAUt. This aggressive accumulation is notable because it defies Tether's primary crypto narrative and sits awkwardly alongside the new US GENIUS Act, which bars compliant issuers from holding gold as reserves, even though Tether is developing a compliant token (USAT) that avoids gold. While gold is seen as a safe-haven asset, its increasing role in backing stablecoins means that a collapse in stablecoin demand could force Tether to sell bullion, potentially drawing the traditionally steady asset into the volatility of crypto markets.

(Source：BeInCrypto)