Bitcoin News Today: Tether Seeks Gold's Secret to Storing Digital Wealth

Tether, the world’s largest stablecoin company, has initiated exploratory discussions with gold mining and investment groups to expand its presence in the bullion market. These talks, according to multiple sources, cover investments across the entire gold supply chain, including mining, refining, trading, and royalty companies. The company’s interest in gold marks a strategic shift in how it manages its vast profits from the USDT stablecoin, which is pegged to the U.S. dollar and has a market capitalization of $168 billion. Tether generated $5.7 billion in profits in the first half of the year, largely through interest earned on U.S. Treasuries it holds to back its stablecoin.

Tether’s chief executive, Paolo Ardoino, has been a vocal advocate for gold, referring to the metal as “natural bitcoin” during a speech in May. He argued that gold, as a physical store of value with centuries of history, complements digital assets like bitcoin, which has existed only since 2009. Tether has already accumulated a significant position in bullion, with $8.7 billion in gold bars stored in a Zurich vault, which the company uses as collateral for its stablecoin. In June, Tether Investments, the division responsible for deploying the company’s profits, paid $105 million for a minority stake in Elemental Altus, a Toronto-listed gold royalty company.

The company is also considering additional royalty investments, including a possible expansion of its stake in Elemental Altus. It previously engaged in discussions with Terranova Resources, a gold mining investment vehicle based in the British Virgin Islands, though these did not result in a deal. Tether has also launched XAUt, a gold-backed token, though it has seen limited adoption compared to its main stablecoin, with a market capitalization of $880 million as of the latest data.

Tether’s foray into the gold industry has sparked mixed reactions from industry experts. Some mining executives have expressed skepticism about the company’s approach, with one describing Tether as “the weirdest company I have ever dealt with.” Others questioned whether the company has a coherent long-term strategy despite its growing interest in gold. Tether has also expanded into commodity trade finance, offering short-term financing for raw material shipments, with a trading book reportedly in the billions.

The broader trend of merging digital assets with physical commodities is gaining traction, with other companies exploring similar strategies. For instance, Blue Gold, a Nasdaq-listed mining firm with operations in Ghana, is planning to issue digital tokens backed by its future gold production. The company’s chief executive, Andrew Cavaghan, argued that gold-backed tokens could gain widespread acceptance as a form of currency due to their tangible value.

Tether’s actions reflect a broader trend among crypto-native firms seeking to diversify their assets and align with traditional stores of value. As geopolitical tensions continue to drive demand for safe-haven assets, gold remains a focal point for investors seeking stability. The company has not commented publicly on its gold strategy, but its recent investments and strategic discussions indicate a clear intent to deepen its involvement in the physical gold market.

Source: [1] Stablecoin group Tether holds talks to invest in gold miners (https://www.ft.com/content/135fb3dd-2395-4f04-8cc6-7fb0e87cd092) [2] Tether Held Talks to Invest in Gold Mining: FT (https://www.coindesk.com/business/2025/09/05/tether-held-talks-to-invest-in-gold-mining-ft) [3] Tether in talks to invest in gold miners as its gold reserves ... (https://cryptobriefing.com/tether-gold-investments-mining/) [4] Tether To Explore Investments In Gold, The 'Natural Bitcoin' (https://www.benzinga.com/crypto/cryptocurrency/25/09/47519465/tether-to-explore-investments-in-gold-the-natural-bitcoin)