Tether's Gold Buying Spree Cools Off in Q1
Financial disclosures for the first quarter of 2026 reveal a notable deceleration in Tether's gold acquisition strategy. The stablecoin giant added approximately 6 tons of gold to its reserves during the period, a sharp drop from the 27 tons purchased in the final quarter of 2025, representing a decline of more than 75%.
Breakdown of Current Gold Holdings
As of March 31, 2026, Tether's reserve composition includes:
- Gold Backing USDT: Holdings increased to roughly 132 tons, valued at approximately $19.8 billion at current market prices. This constitutes about 10% of its total reserves.
- Primary Asset: U.S. Treasury bills remain the cornerstone, with holdings around $117 billion.
- Bitcoin Reserves: Valued at approximately $7 billion.
- Gold Backing XAUT: Reserve gold supporting its gold-pegged stablecoin XAUT grew to about 22 tons.
In aggregate, Tether's physical gold holdings across these products total approximately 154 tons.
Strategic Shifts and Team Dissolution Raise Questions
While Tether's leadership had previously outlined ambitions to allocate 10-15% of its roughly $20 billion investment portfolio to physical gold, a dedicated team tasked with gold trading operations was disbanded in March. The company cited internal management structure limitations as the reason.
The simultaneous slowdown in purchases and the dissolution of the specialized team have fueled speculation about a potential strategic pivot. Market observers suggest this could indicate a reassessment of gold's role and priority within Tether's broader asset diversification framework.