Tether's $200M Bet: Tokenized Gold as Inflation Hedge

Tether, the issuer of the world's largest stablecoin USDT, has announced a $200 million fundraising initiative to establish a digital asset treasury focused on tokenized gold. The plan, reported by Bloomberg and corroborated by multiple sources, involves partnering with Antalpha, a financial services firm closely linked to crypto mining giant Bitmain. The new treasury will accumulate reserves of XAUT, Tether's gold-backed token, which is fully backed by physical gold bars stored in Swiss vaults. XAUT, launched in 2020, currently holds a market capitalization of approximately $1.5 billion, making it the largest tokenized gold offering in the market.

The initiative builds on an expanded collaboration between Tether and Antalpha, which in September 2025 announced plans to offer collateralized lending services backed by XAUT. Antalpha also intends to establish physical vaults in major financial hubs, enabling holders to redeem digital tokens for physical gold bars. Tether has purchased an 8.1% stake in Antalpha, further solidifying their financial partnership. The move aligns with broader trends in the digital asset sector, where over 80 companies have launched crypto treasury vehicles this year, often adopting models pioneered by firms like Michael Saylor's MicroStrategy.

The proposed treasury will be advised by Cohen & Co., a financial advisory firm, and is part of Tether's broader strategy to diversify beyond its core stablecoin business. Tether has previously expanded into bitcoin mining, payments, and energy infrastructure, and in April 2025, it partnered with Cantor Fitzgerald and SoftBank to launch XXI Capital, a bitcoin treasury firm. The gold-focused initiative reflects Tether's growing emphasis on tangible assets amid rising geopolitical uncertainties and inflation concerns. Paolo Ardoino, Tether's CEO, has publicly endorsed gold as a hedge against volatility, with Tether holding $8.7 billion in physical gold as of June 2025.

The fundraising effort adds to Tether's parallel ambitions to raise up to $20 billion for its stablecoin operations, potentially valuing the company at $500 billion if successful. This valuation would position Tether among the world's most valuable private firms. The tokenized gold market has seen significant growth, with demand for XAUT surging 46% in 2025, according to CoinGecko data. Analysts attribute this to increased institutional interest in real-world asset tokenization and the appeal of gold as a safe-haven asset during periods of economic instability.

The initiative also underscores Tether's strategic alignment with Bitmain, which supplies approximately 82% of global crypto mining hardware, as reported by the University of Cambridge Judge Business School in April 2025. By leveraging Antalpha's infrastructure and Tether's liquidity networks, the partnership aims to streamline access to tokenized gold for institutional and retail investors. This includes facilitating on-demand liquidity, custody solutions, and seamless redemption processes, which could accelerate the adoption of blockchain-based precious metals trading.