Tether is one of the world's largest crypto companies that is best known for its stablecoins, USDT and XAUT. While USDT is pegged 1:1 to the U.S. dollar, XAUT is pegged to a troy ounce of gol
Tether is one of the world's largest crypto companies that is best known for its stablecoins, USDT and XAUT. While USDT is pegged 1:1 to the U.S. dollar, XAUT is pegged to a troy ounce of gold.
When Tether published its attestation for the second quarter of 2026 on July 31, it boasted of expanding its gold holdings to more than 146 metric tons.
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Gold's price crashed as low as $4,110.55 per ounce on Sep. 28, its lowest since Aug. 5.
Rising oil prices fueling inflation fears and worry about the Federal Reserve announcing another interest rate hike have weighed on bullion. A stronger U.S. dollar and higher U.S. Treasury yields have added to the pressure, and together these are the primary reasons for the crash in bullion's price.
At the time of writing, gold was trading at $4,135 an ounce.
Tether's 146 metric tons of gold holdings translate into approximately 4.7 million troy ounces.
When gold traded around $4,700 an ounce on Aug. 24, Tether's gold holdings were worth $22.06 billion.
As gold's price crashed to $4,135 an ounce today, the value of the company's holdings fell to $19.41 billion.
It means Tether saw a paper loss of $2.65 billion on its gold holdings between Aug. 24 and Sep. 28 due to the crash in the bullion's price over just more than a month.
Note that it's not a realized loss, as the company has not liquidated its gold holdings. It is only a paper loss calculated on the basis of gold's recent price movement.
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