Jefferies: Tether holds 116 tonnes of physical gold, bought ~2% of quarterly global gold demand and doubled XAUt issuance — S&P downgrades USDT to 'weak' and Tether disputes S&P rating method

first published 2025-11-26T12:39:33Z

Jefferies reports Tether owns 116 tonnes of physical gold — comparable to some central banks — and that its purchases last quarter represented nearly 2% of global gold demand and almost 12% of central bank buying. Tether has added ~275,000 ounces to its XAUt supply since August (XAUt market cap ~ $2.1B), may buy ~100 more tonnes in 2025 per investor expectations, and has invested $300M+ across the gold supply chain (including a 32% stake in Elemental Altus Royalties). Jefferies says Tether’s aggressive accumulation likely tightened short-term gold supply, influenced market sentiment, and that the company increasingly behaves like a central bank while managing large reserve portfolios (short Treasurys, gold, BTC) and minting/redeeming USDT.

AI Analysis

Facts from the summary: Jefferies quantifies Tether’s holdings at 116 tonnes and states its purchases comprised ~2% of global gold demand and ~12% of central bank buying; XAUt issuance increased by ~275,000 ounces (market cap ~$2.1B); Tether has invested $300M+ in precious‑metal producers and may buy ~100t more in 2025. These concrete reserve moves and token issuance can tighten short-term gold supply and affect XAUt/market sentiment, so the story is mildly bullish but not an acute market-moving shock for intraday crypto trading.

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