Tether, the issuer behind the world's largest stablecoin USDT, is embarking on a significant strategic expansion into the gold market. Amidst record-high gold prices driven by safe-haven demand, the company is reportedly eyeing a deeper dive into the precious metal, aiming to integrate tangible assets more closely with its blockchain finance operations. This move signals a calculated effort to diversify its portfolio and capitalize on the current market dynamics.
Deepening Engagement Across the Gold Supply Chain
Tether is reportedly in discussions with various mining and investment groups to explore opportunities throughout the entire gold supply chain. This ambitious plan could see Tether participating in every stage, from the initial mining and refining processes to trading and collecting royalties. The timing of these discussions is particularly noteworthy, as gold prices have recently soared to an unprecedented $3,550 per ounce, creating an exceptionally favorable environment for new investments in the sector. This strategic push positions Tether not just as an investor, but as a potential player across the foundational aspects of the gold industry.
A Growing Portfolio of Gold-Backed Assets
This isn't Tether's first foray into gold; it's a deliberate expansion of an existing strategy. The company already holds a significant stake in Elemental Altus Royalties Corp., a Canadian gold-focused firm, having secured a 31.9% controlling ownership with a $90 million investment in June. Further cementing this commitment, Tether recently agreed to acquire an additional $100 million worth of shares in the same company. Beyond equity stakes, Tether also issues Tether Gold (XAUT), a leading digital token backed by over 7.66 tons of physical gold stored in Switzerland. Furthermore, Tether has disclosed that its gold holdings represent more than 5% of the reserves backing its dominant USDT stablecoins, underscoring its long-term vision to link the stability of gold with the innovative potential of blockchain technology.
