Tether Seeks to Remake Gold as a Digital Age Store of Value

Tether, the issuer of USDT—the world’s largest stablecoin—is expanding its gold exposure beyond its existing $8.7 billion in physical gold reserves held in a Zurich vault. The company is reportedly in discussions with mining, refining, trading, and royalty firms to invest across the entire gold supply chain. These efforts reflect a broader strategy to leverage Tether’s substantial crypto profits in tangible assets, as well as a growing interest in diversifying its stablecoin collateral base.

Tether’s foray into gold began in June 2025, when it acquired a $105 million minority stake in Elemental Altus, a Toronto-listed gold royalty company. This marked the first major move into the royalty sector, which allows firms to earn a percentage of future mine revenues without the operational risks associated with direct mining. Tether’s investment in Elemental Altus was followed by an additional $100 million infusion just days later, coinciding with Elemental’s merger with EMX Royalty. This raised Tether’s total investment in the firm to over $200 million, positioning it for a potentially controlling stake.

Tether CEO Paolo Ardoino has been a vocal proponent of gold, often framing it as a “natural complement” to Bitcoin rather than the other way around. In a May 2025 speech, he remarked, “I prefer to think in Bitcoin terms—I think gold is our source of nature.” This philosophy has driven Tether’s strategy to integrate gold into its financial ecosystem, which already includes the gold-backed stablecoin XAUt, pegged to one troy ounce of physical gold. Despite its innovative premise, XAUt has a much smaller market capitalization of $880 million compared to USDT’s $168 billion.

Industry insiders, however, remain skeptical. Some have described Tether as an unconventional player in the traditionally conservative gold sector. One mining executive noted, “They like gold. I don’t think they have a strategy.” Others have characterized Tether as “the weirdest company I have ever dealt with,” suggesting that its digital-native approach to asset allocation may not align with the more methodical strategies of traditional gold firms.

Tether’s interest in gold has also extended to potential investments in mining vehicles, including Terranova Resources, a gold-focused entity based in the British Virgin Islands. While negotiations with Terranova did not result in a deal, the company’s engagement with multiple gold sector players highlights its intent to expand its footprint in physical commodities. Tether has also developed a growing commodity trade finance book, providing short-term financing for bulk shipments of raw materials, according to industry sources.

The broader move aligns with Tether’s efforts to diversify its reserves, particularly as the stablecoin market faces increasing regulatory scrutiny. Gold, historically viewed as a hedge against economic uncertainty, has gained renewed interest among digital asset investors, especially as geopolitical tensions persist and fiat currencies face inflationary pressures. The metal has surged to record levels, trading above $3,550 per ounce in late 2025—nearly double its value from two years earlier.

Gold’s appeal as a store of value has also drawn attention from other industry players. For instance, Blue Gold, a Nasdaq-listed mining company, is exploring the issuance of gold-backed digital tokens for its future production. CEO Andrew Cavaghan stated that such a product could “really take off globally as a form of currency because people can really feel how real it is.”

Tether’s approach represents a hybrid model that blends blockchain-based finance with traditional asset classes. By investing in gold royalties and physical bullion, the company aims to create a more resilient financial infrastructure for its stablecoin ecosystem. Whether this strategy will be emulated by other stablecoin issuers remains uncertain. Tether’s massive profit margins—$5.7 billion in the first half of 2025—give it a unique capacity to experiment with high-value assets, whereas smaller competitors may be constrained by regulatory and capital limitations.

Source:

[1] Stablecoin group Tether holds talks to invest in gold miners (https://www.ft.com/content/135fb3dd-2395-4f04-8cc6-7fb0e87cd092)

[2] Tether in talks to invest in gold miners as its gold reserves... (https://cryptobriefing.com/tether-gold-investments-mining/)

[3] USDT Issuer Tether Holds Talks to Invest in Gold Mining: FT (https://www.coindesk.com/business/2025/09/05/tether-held-talks-to-invest-in-gold-mining-ft)

[4] Is Tether About to Ignite a Crypto Gold Rush? (https://247wallst.com/investing/2025/09/05/is-tether-about-to-ignite-a-crypto-gold-rush/)

[5] Stablecoin Giant Tether in Talks to Deepen Gold... (https://cryptonews.com/news/stablecoin-giant-tether-in-talks-to-deepen-gold-investments-beyond-8-7b-reserves/)

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