TechFlow reports that, according to the Financial Times, gold has surpassed U.S. government bonds to become the world’s largest reserve asset. As stated in a report released by the European Central Bank (ECB) on Tuesday, gold accounted for 27% of central banks’ global reserve assets as of end-2025—up from 20% a year earlier. During the same period, U.S. Treasury securities’ share fell from 25% to 22%. The share of reserve assets denominated in euros remained unchanged at 15%.
Reserve assets are highly liquid assets held by central banks to support their domestic currency’s exchange rate, meet international payment obligations, and provide liquidity support during financial turmoil. This shift in reserve composition reflects many countries’ efforts to seek alternatives to the U.S. dollar—the de facto global reserve currency. Such efforts have notably accelerated since 2022, when the United States froze Russia’s dollar reserves as part of sanctions imposed following the outbreak of the Russia-Ukraine conflict.
ECB President Christine Lagarde wrote in Tuesday’s report: “Geopolitical tensions continue to drive strong central bank demand for gold.”
