Tether Suffers $2.65 Billion Paper Loss on Gold Holdings
Tether, one of the world's largest crypto companies known for its stablecoins USDT and XAUT, has suffered a significant paper loss on its gold holdings. The company's attestation for the second quarter of 2026 showed that it held over 146 metric tons of gold, worth around $22 billion at the time when gold was trading at $4,700 an ounce.
However, due to the recent crash in gold prices, which hit a seven-week low of $4,110.55 per ounce on September 28, Tether's gold holdings are now only worth $19.41 billion. This translates into a paper loss of $2.65 billion for the company over just more than a month.
The decline in gold prices is attributed to rising oil prices, fueling inflation fears and concerns about another interest rate hike by the Federal Reserve. Additionally, a stronger U.S. dollar and higher U.S. Treasury yields have added to the pressure on bullion's price.