Fed Easing Brings Tether as Major Gold Investor; Gold Prices Hit a Record

Tether, the issuer of the world’s largest stablecoin, emerges as a notable institutional gold buyer after Fed easing, as central banks and corporates push gold to new highs.

Rich by Coin

2025-12-19

Fed easing has drawn a visible institutional buyer into gold in the form of Tether, the issuer of the world’s largest stablecoin. Quarterly filings show Tether bought about 26 tons of gold in the third quarter, roughly five times the amount reported by China’s central bank. Spot gold prices reached a record $4,381 in October, having never breached $3,000 before March, driven by demand from central banks and investors with new participants—from stablecoin issuers to corporate treasurers.

BofA strategist Michael Widmer said expectations of further gains or portfolio diversification are driving the buying, with impetus from US fiscal deficits, efforts to narrow the US current account deficit and a weak dollar policy. Analysts say the move signals a broader shift in gold demand, as institutional buyers expand beyond traditional central banks, potentially sustaining price support amid deficits and currency nuances.