Gold has overtaken US Treasuries as the world’s largest central bank reserve asset, marking a significant change in how governments are protecting national wealth and managing financial risk. According to new European Central Bank data, gold accounted for 27% of global reserve assets at the end of 2025, ahead of US Treasuries at 22%, following years of heavy central-bank buying and a powerful rally in bullion prices.
Central banks have been increasing gold purchases since 2022, when Western governments froze Russia’s foreign reserves following the invasion of Ukraine. For many countries, the episode highlighted the appeal of assets that sit outside another nation’s financial system. Gold, which carries no counterparty risk and cannot be frozen by a foreign government, has become increasingly attractive as a reserve asset.
While the US dollar remains dominant overall, accounting for 42% of global reserve holdings, reserve managers are no longer concentrating quite as heavily in Treasuries as they once did. Instead, central banks have steadily increased bullion purchases, creating one of the strongest periods of official-sector gold demand in modern history.
The world’s central banks now hold more than 36,000 tonnes of gold, close to the levels seen during the Bretton Woods era, when the dollar itself was linked directly to bullion. China, Poland, Turkey and India have been among the largest buyers since 2022, while annual purchases remained exceptionally strong throughout 2025.
Government buyers are not alone. Stablecoin issuer Tether emerged as the single largest gold buyer in 2025, purchasing more than 100 tonnes. The purchase highlights how interest in gold is spreading beyond traditional reserve holders and into parts of the digital asset economy that increasingly operate alongside the conventional financial system.
The trend is also being watched closely by bond markets. Governments rely on large pools of capital to absorb sovereign debt issuance, and US Treasuries have traditionally occupied the center of that system. Although Treasuries remain one of the world’s most important financial assets, any sustained reduction in reserve demand naturally attracts scrutiny from policymakers, investors and borrowing nations alike.
For companies, shifts in capital allocation are worth watching. Large borrowing programs, acquisitions and expansion plans ultimately depend on financing markets that are heavily influenced by government debt and investor demand. Changes at the top of the reserve system rarely stay confined there forever.
The ECB’s report also highlighted growing international use of the euro. Euro-denominated debt issuance rose 30% to nearly €1 trillion last year, while foreign investors added roughly €850 billion to euro area assets. Neither development threatens the dollar’s dominant role, but both suggest that reserve managers and investors are becoming more willing to diversify.
Treasuries remain at the center of global finance. Yet central banks continue adding gold, and in growing quantities. That was not the expected direction of travel a few years ago.
