Tether Gold Holdings Top Central Banks in 2025, ECB Data Shows

The European Central Bank reported on June 2, 2026, that official central bank gold purchases declined to approximately 850 tonnes in 2025, down from over 1,000 tonnes annually during the 2022-2024 period. Despite the lower tonnage, dollar spending accelerated due to a 43% increase in the average gold price, which rose from $2,386 per ounce in 2024 to $3,431 in 2025. The report notably identified Tether, the issuer of the USDT stablecoin, as the largest single buyer of gold reserves during the year, surpassing all disclosed central bank activity.

Context — why gold reserve buying matters now

Central bank gold accumulation has been a dominant theme in reserve management since 2022, driven by de-dollarization efforts and geopolitical fragmentation. The World Gold Council reported record official sector purchases of 1,136 tonnes in 2022, followed by 1,081 tonnes in 2023 and 1,037 tonnes in 2024. This multi-year trend reversed in 2025 as higher prices altered acquisition strategies and non-traditional buyers entered the market.

The current macro backdrop features gold trading at $4,516 per ounce, near all-time highs, with real yields hovering at 1.8% and the U.S. dollar index at 104.2. The trigger for increased scrutiny of reserve flows was the ECB's annual review on the international role of the euro, which included previously undisclosed data on non-official sector gold accumulation.

Persistent inflation concerns and fiscal deficits have sustained demand for non-sovereign store-of-value assets. This environment has enabled large non-state entities like Tether to accumulate physical gold as a core reserve asset, mirroring strategies previously exclusive to national central banks.

Data — what the numbers show

Official central bank gold purchases totaled 850 tonnes in 2025, representing an 18% decline from the previous year's 1,037 tonnes. In dollar terms, spending increased significantly due to higher prices, with the total value of purchases rising from approximately $79.6 billion in 2024 to over $93.7 billion in 2025 based on average annual prices.

The average gold price increased 43% year-over-year, from $2,386/oz in 2024 to $3,431/oz in 2025. Current spot prices of $4,516/oz represent a 31.6% premium to the 2025 average, suggesting continued strong demand into 2026.

Tether's gold reserves now represent a substantial portion of the total market. The company's reported holdings of approximately 850 tonnes would place it among the top 20 national gold reserves globally, comparable to the United Kingdom's reported holdings of 310 tonnes and Russia's 2,330 tonnes.

The data likely understates true central bank activity, particularly from China, which has historically been opaque about its gold acquisition patterns. Other nations including Russia and Turkey have also been known to limit public disclosure of reserve changes during periods of geopolitical tension.

Analysis — what it means for markets

Tether's massive gold accumulation creates second-order effects across multiple asset classes. Gold mining equities like Newmont Corporation (NEM) and Barrick Gold (GOLD) benefit from sustained institutional demand, with NEM gaining 14% year-to-date versus SPX's 8% return. Gold ETFs such as GLD and PHYS experience increased flows as retail and institutional investors seek exposure.

The crypto sector faces mixed implications. Bitcoin initially traded lower on the news as some investors interpreted Tether's move as reducing USDT backing quality, though it later recovered. Stablecoin issuers like Circle (USDC) may face pressure to demonstrate similar reserve strength, potentially increasing their own commodity allocations.

A key limitation to this analysis is the lack of transparency around Tether's storage and audit practices. Unlike central banks, whose holdings are typically stored in secure government vaults, Tether's physical storage arrangements and verification processes remain less clearly documented.

Positioning data shows hedge funds increasing long exposure to gold futures, with net long positions reaching 184,000 contracts according to the latest CFTC Commitments of Traders report. Physical gold ETFs recorded $12.3 billion in inflows during the first quarter of 2026.

Outlook — what to watch next

The June 18 FOMC meeting will provide crucial guidance on interest rate policy, which directly influences gold's attractiveness relative to yield-bearing assets. Any indication of rate cuts would likely support further gold price appreciation above current levels.

Key technical levels to monitor include gold's psychological resistance at $4,500/oz and support at the 50-day moving average of $4,212/oz. A sustained break above $4,600 would target the $5,000 level based on historical extension patterns.

Tether's quarterly attestation report, due in late July, will provide updated details on their reserve composition and gold verification methods. Market participants will scrutinize whether the company continues accumulating gold or begins diversifying into other assets.

The World Gold Council's comprehensive annual report in August will provide finalized 2025 purchase figures and may offer revised estimates for undisclosed buying from China and other nations.

Frequently Asked Questions

How does Tether's gold purchase affect USDT stability?

Tether's substantial gold reserves potentially enhance USDT's stability by backing the stablecoin with a non-sovereign asset that maintains value during inflation or banking stress. The 850 tonnes of gold represents approximately $154 billion at current prices, covering a significant portion of USDT's $163 billion market capitalization. This backing could reduce correlation with traditional banking systems but introduces new volatility risks from commodity price fluctuations.

What is the historical precedent for private entities holding large gold reserves?

Private gold holdings of this magnitude are unprecedented in modern markets. The closest historical comparison is the Bank for International Settlements, which holds 108 tonnes for member central banks. Before the 1933 gold confiscation, private U.S. citizens held substantial gold, but contemporary regulations limit individual ownership. Tether's accumulation exceeds many sovereign nations' reserves and represents a new phenomenon in asset backing.

Why do central banks hide their gold purchase activities?

Central banks conceal gold purchases for strategic reasons including avoiding market impact on prices, maintaining tactical ambiguity during geopolitical tensions, and preventing currency speculation. China in particular has historically underreported gold acquisitions to minimize dollar depreciation concerns. Russia similarly limited disclosure during periods of sanctions pressure. This opacity creates challenges for accurate market analysis of true supply-demand dynamics.

Bottom Line

Tether's 2025 gold accumulation eclipsed disclosed central bank activity, signaling crypto's growing influence on traditional reserve assets.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.