Tether Expands Into Gold Investments Across Supply Chain
Tether, the issuer of USDt, is in talks to invest across the gold supply chain. The Financial Times reports the company has spoken...
Quick overview
- Tether is exploring investments in the gold supply chain, including mining, refining, and trading, to diversify its reserves beyond cash and Treasuries.
- The company currently holds $162 billion in reserves, with a significant portion tied to U.S. Treasuries, prompting a need for risk management through gold investments.
- Tether has already invested in physical gold and royalty streams, including a $205 million stake in Elemental Altus Royalties, to generate revenue with lower operational risks.
- Despite skepticism from the mining sector regarding Tether's strategy, the company continues to seek opportunities in the commodities market.
Tether, the issuer of USDt, is in talks to invest across the gold supply chain. The Financial Times reports the company has spoken with mining and investment groups about mining, refining, trading, and royalty deals. Why now? The reason is risk control and reach. Tether wants to spread exposure beyond cash and Treasuries while tapping a market tied to a proven store of value.
Why Gold, and Why This Year?
Tether holds $162 billion in reserves. About $130 billion sits in cash, equivalents, and short-term deposits. Of this, nearly $127 billion is linked to U.S. Treasuries. This setup has produced steady income. In the first half of 2025, Tether reported $5.7 billion in net profit. Yet such heavy concentration also creates risk. That is why the firm views gold as a balancing asset, since it tends to move differently from rates.
The market adds weight to this decision. Gold prices have jumped 36.5% this year to about $3,600 per ounce. On Friday afternoon, they touched a record $3,650. Higher prices raise the value of reserves. They also boost potential returns from mining and royalties. As a result, allocating funds to bullion and royalties can bring both diversification and cash flow.
The Company is Growing its Exposure Gradually
Tether already owns $8.7 billion in physical gold stored in a Zurich vault. These bars back Tether Gold (XAUT), a token with a market capitalization of $1.4 billion and a price near $3,593.61. In July, almost 250,000 XAUT were in circulation, backed by more than 7.66 tons of gold in Swiss storage. The numbers reflect different snapshots of reserves and token claims, since both are reported at different times and across different pools.
The company is also moving into royalty streams. In June, Tether Investments bought a $105 million stake in Toronto-listed Elemental Altus Royalties. On Friday, it added another $100 million. This lifted its ownership to about 37.8%. Royalties give Tether revenue exposure to multiple mines. They also carry less operating risk, since royalty payments are made before mine-level costs.
Not all talks succeed. Discussions with Terranova Resources, a British Virgin Islands gold vehicle, did not lead to a deal. Still, Tether continues to review more opportunities. This approach helps spread both timing and jurisdiction risk.
How Did Industry Respond?
The mining sector has reacted with caution. One executive said, “They like gold. I don’t think they have a strategy.” Another commodity executive called Tether “the weirdest company I have ever dealt with.” The skepticism reflects the nature of the gold industry, which is conservative and wary of a crypto-backed entrant.
Tether has already tested the commodities space. In October 2024, it looked at lending profits to traders. A month later, it financed a $45 million crude oil transaction. Insiders also note its commodity trade finance book is now worth billions. The pattern is clear. Tether uses profits from its stablecoin business to secure real-world cash flows.
Chief executive Paolo Ardoino supports gold as “natural bitcoin.” In response to the FT story, he posted only two words: “Stability maximalism.”
Stability maximalism pic.twitter.com/flbeEBMV4p
— Paolo Ardoino 🤖 (@paoloardoino) September 5, 2025
The question now is simple. Can a stablecoin giant tie digital dollars to gold in a way that makes both stronger?
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