Banyan Gold Corp. (TSXV: BYN, OTCQB: BYAGF)
The New Yukon Gold Rush - TARGETING 5 MILLION OZ. AT 1+ G/T
The world’s largest stablecoin issuer, Tether, is accelerating its gold reserve buildup. The company’s latest second-quarter report shows that Tether purchased 14 tonnes of physical gold over the three-month period ending June, bringing its total gold reserves backing USDT to more than 146 tonnes, with a total value of approximately $18.8 billion. This scale has made it the largest known gold holder outside of banks and nation-states.
Buying the Dip as Gold Tumbles
The most noteworthy aspect of this increase is its timing. In the second quarter of this year, gold prices suffered their sharpest quarterly decline since 2013, plunging approximately 14%. Earlier in January, the price had approached a record high of nearly $5,600 per ounce before succumbing to a series of sharp selloffs triggered by the outbreak of the U.S.-Iran war and other factors.
Data shows that Tether had added only about 6 tonnes of gold in the first quarter, making the second-quarter buying pace notably faster. However, this still falls short of the more than 21 tonnes accumulated in the fourth quarter of 2025. CEO Paolo Ardoino stated that the company continued to expand its gold allocation in the second quarter while reducing secured lending by $2.38 billion and maintaining its position as a major U.S. Treasury investor.
The Logic Behind the Stablecoin Giant’s Gold Strategy
Why has Tether become such a heavyweight buyer in the gold market? The answer lies in its business model. Tether issues USDT — the world’s largest dollar-pegged stablecoin, with approximately $184.6 billion in circulation and a market share exceeding 60%. Each USDT is backed by dollar-denominated assets of equivalent value. When a user deposits $1, the company issues 1 USDT and invests the funds in highly liquid assets such as U.S. Treasuries. Under this model, USDT holders earn no interest, while Tether captures all investment income, generating substantial cash flow for the company.
In the second quarter, Tether posted net operating profit of $1.5 billion, driven primarily by its U.S. Treasury portfolio and repo market performance. These robust profits have provided the firepower for continued gold accumulation — as of the end of June, Tether’s total assets stood at approximately $187.8 billion, exceeding its liabilities by about $4.1 billion. Gold now accounts for roughly 10% of USDT reserves.
Expanding the Gold Footprint
Beyond USDT, Tether also issues XAUT, a stablecoin fully backed by physical gold, with a circulating market value of approximately $2.84 billion, corresponding to about 22 tonnes of physical gold stored in Swiss vaults. Tether has also previously disclosed plans to allocate 10% to 15% of its own approximately $20 billion investment portfolio to physical gold, suggesting further accumulation lies ahead.
JPMorgan’s head of precious and base metals research noted that Tether’s gold purchases last year exceeded those of all central banks except Poland. If treated as a central bank, Tether’s total holdings of 154 tonnes would rank among the global top 20, just behind Brazil’s 172 tonnes.
Market Impact and Outlook
Tether’s sustained buying underscores an important trend: as crypto finance increasingly converges with traditional assets, stablecoin issuers are emerging as a significant new force in the physical gold market. The company’s aggressive accumulation during the second-quarter price slump further demonstrates institutional conviction in gold’s long-term store-of-value proposition. For the gold market, this new source of structural demand could further reshape supply-demand dynamics in the years ahead.
