Tether has significantly increased its gold reserves, now holding nearly 140 tons, making it one of the top 30 largest gold holders globally. This expansion comes as a Chinese gold trading platform, Jie Wo Rui, collapses, leaving users unable to withdraw funds. Jie Wo Rui's failure is attributed to its high-leverage gold trading model, which crumbled under rising gold prices. In contrast, Tether's gold-backed stablecoin, Tether Gold (XAUT), maintains a 1:1 backing with physical gold, avoiding leverage and speculative trading. As gold prices surged in early 2026, Tether's gold holdings appreciated by over $5 billion, with plans to continue increasing its reserves. This strategic approach positions Tether as a stable force in the volatile gold market, highlighting the potential of digital gold as a secure store of value.