Tether has emerged as one of the biggest winners from this year’s record-breaking gold rally, booking a gain of more than 5 billion dollars on its bullion holdings while reigniting scrutiny over the risk profile behind the world’s largest stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term.

According to the Financial Times, Tether held about 116 tonnes of gold at the end of September, according to estimates based on its public disclosures, a position then worth roughly 14.4 billion dollars.

Since then, the price of gold has surged from about 3,858 dollars per troy ounce to above 5,200 dollars, lifting the value of that stash by more than 5 billion dollars on paper.

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The company has said it added a further 27 tonnes of bullion in the fourth quarter to support its gold-backed token, pushing its total gold holdings to around 24 billion dollars.

Every week, more than a ton of gold is hauled into a high-security vault located in a Cold War-era bunker owned by Tether. It is now the world’s largest known hoard of bullion outside of banks and nation states, and has turned the crypto giant into a major player in the industry.… pic.twitter.com/qWwgjUuWy1

— Bloomberg (@business) January 28, 2026

Haven Rally Amplifies Tether Gains

The scale of the position now places Tether among the largest non-sovereign owners of the metal. Analysts say the stablecoin issuer controls a volume of gold similar to that of Qatar’s central bank, while the UK holds 310 tonnes.

The rally in gold has been driven by surging demand for haven assets as geopolitical tensions rise. The price moved through the 5,000 dollar mark for the first time this week, with investors citing mounting global uncertainty and trade frictions.

Keep reading: Wall Street's $6,000 Gold Price Targets May Be Setting a Retail Trap, Warns Scope Markets EU CEO

Gold surged to a fresh record high of 5,316 dollars per ounce on Wednesday, its seventh straight session of gains. This comes as the US dollar slumped to four-year lows ahead of a pivotal Federal Reserve meeting.

President Donald Trump’s tariff threats and his demand to seize Greenland have added to a sense of instability, fuelling repeated record highs in the metal this year and magnifying the gains on Tether’s position.

The windfall comes as Tether cements its dominance in digital dollar markets. Its USDT token is the most widely used stablecoin, with a circulating value of about 187 billion dollars.

New US Token, Old Reserve Concerns

Traders use USDT as a bridge between sovereign currencies and crypto assets, relying on its one-to-one peg with the US dollar for liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term across exchanges. Tether backs that peg with a mix of assets that include gold, Bitcoin, US Treasuries and secured loans.

Alongside USDT, the company reportedly issues XAUt, a separate gold-backed token, and stores its bullion in Swiss vaults. The firm said its gold-backed token has risen in value by at least 700 million dollars this year.

Tether is also pushing deeper into the US market. On Tuesday it launched USAT, a US-focused stablecoin that it says complies with the Genius Act stablecoin law.

The latest gains have not eased long-standing concerns over the stability and transparency of Tether’s reserves. The company has faced years of questions from regulators, investors and rivals about the quality and liquidity of the assets backing USDT.