Tether's Gold Stockpile Surges Past 146 Tons Amid Bullion Price Slide

Tether's gold holdings have reached an impressive 146 tons after the company added 14 tons in the second quarter. This buying spree has been ongoing for over a year, with Tether emerging as the largest known gold holder outside of banks and governments.

The gold prices experienced a decline during this period due to inflationary effects caused by the Iran War, which pushed bond yields higher. This made it more challenging for gold to maintain its value since it does not pay interest.

Tether's business model is centered around issuing USDT, which are backed by dollars invested in Treasuries, gold, and other holdings. The company has been steadily increasing its gold reserves, with a significant rebound in the second quarter driven by new USDT supply and increased token issuance of close to $500 million.

Tether's venture into gold lending via Gold.com has also generated revenue, with outstanding leases and customer advances totaling $363 million as of March 31. The company's reserve disclosures provide a snapshot of its reserve mix, which includes both volatile assets like gold and more stable options such as cash or Treasuries.