Tether's Q3 gold purchases surpassed those of central banks & USDT's rating was downgraded by S&P.
Summary of key points
Tether purchased approximately 26 metric tons of gold in the third quarter of 2025, exceeding the purchases of any single central bank, bringing its total gold reserves to 116 metric tons (approximately $12.9 billion). On November 26, S&P downgraded USDT's rating from 4 (restricted) to 5 (weak) , citing increased exposure to risky assets and insufficient disclosure transparency. Despite the downgrade, the USDT price remained stable and did not de-peg.
Detailed Analysis of Gold Purchases
Q3 Purchase Volume and Comparison
Tether added approximately 26 metric tons of physical gold reserves in the third quarter of 2025 (July 1 to September 30 UTC), a figure calculated by Jefferies analysts based on a continuously audited report. This purchase represents about 2% of global gold demand and about 12% of net central bank purchases (a total of 220 metric tons in the quarter ).
Performance compared to the central bank :
| Purchaser | Q3 purchase volume | percentage |
|---|---|---|
| Tether | 26 metric tons | Surpassing all single central banks |
| Central Bank of Kazakhstan (largest single central bank) | 18 metric tons | - |
| Global central banks total | 220 metric tons | Tether accounts for 12%. |
Jefferies explicitly stated that Tether's Q3 purchases exceeded those of any single central bank, making it the world's largest non-sovereign gold holder. (Reuters CCN)
Reserve Structure Analysis
Total gold reserves after Q3 : 116 metric tons (approximately US$12.9 billion), of which:
- Approximately 104 metric tons will be used to back the USDT stablecoin reserves.
- Approximately 12 metric tons will be used for XAU₮ gold tokens.
Portfolio composition : Gold accounts for approximately 7% of Tether's total reserves ($181.2 billion), and gold + Bitcoin together account for approximately 13% ($12.9 billion + $9.9 billion). (Tether.io CCN)
Purchase Motivation
Tether is employing a diversified, forward-looking reserve strategy amid a challenging global macroeconomic environment. Tether.io CEO Paolo Ardoino emphasized investing profits in safe-haven assets such as gold to maintain stability, believing that "the world continues to get darker." (CCN)
Details of S&P rating downgrade
Lower the timeline
| time | Rating changes | Details |
|---|---|---|
| December 2023 | Initial rating: Level 4 (Restricted) | Initial rating |
| November 26, 2025 | Downgraded to Level 5 (Weak) | Lowest rating level |
Rating System : S&P stablecoin stability is assessed using a 1-5 scale (1 being the strongest, 5 the weakest). CoinDesk
Analysis of the reasons for the downward adjustment
Key risk factors :
Exposure to risky assets surged : the proportion of high-risk assets rose from 17% to approximately 24%.
- Bitcoin: 5.6% (above the 3.9% buffer, facing the risk of a BTC decline)
- Gold: 7% (26 metric tons added in Q3)
- Secured loans: 8% ($14 billion)
- Corporate bonds and other risky assets
Insufficient transparency : Lack of transparency regarding custodian/counterparty creditworthiness, asset valuation, and bank partnerships. (USNews/Reuters CCN)
Undercollateralization risk : A drop in BTC and other risks could erode coverage. (CryptoBriefing)
Reserve composition : According to Tether's audit report dated October 31, 2025 (BDO Italy), 77% is cash/US Treasury bonds, which does not meet the GENIUS Act's ideal requirement of a 1:1 ratio of short-term US dollar assets. (CoinDesk )
Tether's official response
Tether strongly disagrees with the S&P assessment, arguing that its use of a "traditional framework" ignores USDT's size (US$184 billion market capitalization), resilience (failed redemptions of billions of dollars during the crisis), transparency, and emerging market utility. (CoinDesk CryptoBriefing )
Emphasis on financial strength :
- $135 billion in US Treasury bonds (top holders)
- Profits of $13 billion in 2024
- Profits of $10 billion since the beginning of 2025
CEO Paolo Ardoino on the X platform called this "traditional financial propaganda" and questioned on-chain verification. (CryptoBriefing)
Market Impact Analysis
Price stability performance
USDT price trend :
| period | Price range | Key Performance |
|---|---|---|
| Q3 2025 | $0.9997-$1.0010 | Minor fluctuations, no anchor breakage |
| November 20-26 | Minimum $0.9986 | After a brief 0.15% drop, it quickly recovered. |
| Closing price on November 26 | $0.9998 | Prices stabilized after rating downgrade |
Market reaction :
- No major shocks : Market capitalization remains stable at $184 billion
- The peg remains in place : no large-scale capital outflow or exchange delisting has occurred.
- Market sentiment : Twitter search results show limited reaction, no viral panic about derailment.
Despite facing a rating downgrade, USDT has demonstrated strong market resilience thanks to its deep penetration in the DeFi ecosystem and emerging markets. (CoinDesk CryptoBriefing)
in conclusion
Tether's aggressive gold allocation strategy in Q3 demonstrated its ambition for reserve diversification, but it also became a significant factor in the S&P downgrade. Despite the rating drop to the lowest level, USDT's market position and price stability have not yet been substantially impacted. However, with increased exposure to risky assets, a significant drop in Bitcoin or gold prices could pose a challenge to USDT's stability.