Tether Unleashes Torrent of Gold Demand
Tether, the issuer of USDT, the world's dominant dollar stablecoin, has been buying physical gold at an unprecedented pace. Since Q2 2025, it has purchased more gold than almost every central bank on earth.
According to Adrian Day, Chairman and CEO of Adrian Day Asset Management, this is a story that has badly underappreciated by the market.
A gold-backed stablecoin is a digital token fully backed by physical gold. The issuer must hold one troy ounce per token, making it price-insensitive demand. This means every unit of adoption translates directly into physical purchasing.
Tether's XAUT gold stablecoin has been building reserves ahead of widespread adoption. Its executives have projected that the gold stablecoin could grow as rapidly over the next five years as the dollar stablecoin did over the prior five.