Stablecoin giant Tether is reportedly exploring significant investments across the gold supply chain, including mining, refining, trading, and royalty sectors. This strategic move aims to further diversify its substantial reserves, which already include $8.7 billion in physical gold. The exploration comes as gold prices reach record highs, presenting a potentially lucrative opportunity for the company.
Key Takeaways
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Tether is in discussions with mining and investment groups to deploy capital across the gold sector.
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The company already holds $8.7 billion in physical gold reserves.
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Tether recently increased its stake in gold royalty company Elemental.
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Gold prices have surged significantly in 2025, nearing all-time highs.
Expanding Investment Portfolio
Tether, the issuer of the world's largest stablecoin USDT, is actively seeking opportunities to invest in various facets of the gold industry. According to reports citing individuals familiar with the matter, the company has engaged in talks with mining and investment firms. These discussions cover potential capital deployment in gold mining operations, refining processes, trading activities, and royalty companies.
This initiative represents a significant step in Tether's ongoing strategy to broaden its investment portfolio and manage risk. The company's reserves are substantial, with a significant portion held in cash and short-term deposits. However, the move into the physical commodities sector, particularly gold, signals a more aggressive diversification strategy.
Gold Reserves and Market Performance
Tether already possesses a considerable amount of physical gold, with $8.7 billion worth stored in a vault in Zurich, Switzerland. These gold holdings serve as backing for Tether Gold (XAUT), the company's gold-pegged stablecoin, which has a market capitalization of approximately $1.4 billion. The recent surge in gold prices, reaching around $3,600 per ounce and marking a 36.5% increase year-to-date, makes these investments particularly timely.
Tether's CEO, Paolo Ardoino, has previously referred to gold as "bitcoin in nature," highlighting the perceived value and stability of the precious metal, drawing parallels to the digital asset that many crypto investors view as a store of value.
Recent Ventures in Commodities
This exploration into the gold supply chain is not Tether's first foray into commodity markets. In late 2024, the company considered lending profits to commodity traders and expanded into oil trading through a $45 million crude oil transaction. More recently, Tether increased its investment in the Canadian gold royalty company Elemental, acquiring a $100 million share purchase. This acquisition means Tether now owns a substantial 37.8% stake in Elemental, a company that generates revenue from gold mining operations.
These moves underscore Tether's evolving financial strategy, leveraging its significant profits—reported at $5.7 billion in net profit for the first half of 2025—to explore diverse and potentially high-yield investment avenues beyond the traditional cryptocurrency market.
Sources
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Tether Seeks to Invest in Gold Supply Chain: Report, Cointelegraph.
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USDT Issuer Tether Holds Talks to Invest in Gold Mining: FT, CoinDesk.
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Tether Explores Gold Mining Investments as Gold Hits Record Highs, CryptoDnes.bg.
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