Tether Trims Gold Holdings by 3 Tons While Analysts Stay Bullish on Demand

Tether cut its physical gold reserves by roughly three metric tons in the third quarter, bringing the total to 165 tons. This was the first quarterly drop after buying 14 tons earlier, with USDT-backed gold falling to 142.8 tons while XAUT holdings stayed at 22 tons. Jefferies analysts see no shift in strategy, noting that stablecoins and tokenized gold are emerging drivers of institutional demand. Tether’s holdings have nearly doubled from 90 tons in June 2025, and the value of USDT reserves rose to $19.1 billion due to higher prices. Société Générale ranks Tether as the fifth-largest net buyer since 2023 with 87.5 tons accumulated and 31% annualized growth. Tokenized gold products now exceed $6 billion in market cap and 45 tons of exposure, though trading volatility may increase.