Tether Seeks Greater Gold Exposure
Stablecoin issuer Tether is in early talks with mining and investment groups to invest across the gold supply chain. The discussions, reported by the Financial Times, indicate Tether�s intent to diversify its portfolio by deploying capital in areas such as gold mining, refining, trading, and royalty companies.
Current Gold Holdings and Tether Gold
The company holds about $8.7 billion in physical gold, kept in a vault in Zurich, Switzerland. These reserves back Tether Gold (XAUT), a gold-pegged stablecoin with a market capitalization of approximately $1.4 billion.
Overview of Tether's Reserve Allocations
Tether�s reserves total about $162 billion. Of that, around $130 billion, or 80%, is held in cash, cash equivalents, or short-term deposits. This includes about $127 billion in U.S. Treasury exposure. The company posted $5.7 billion in net profit for the first half of 2025, according to a June audit report.
Gold Price Surge and Market Context
The move comes as gold prices have increased sharply. The price per ounce has reached approximately $3,600 as of writing, up 36.5% year-to-date, based on data from APMEX.
Expanding Commodity Investments
- In October 2024, Tether considered investments in other commodities.
- In November 2024, the company engaged in a $45 million crude oil financing deal.
- On Friday, Tether expanded its investment in Canadian gold royalty company Elemental by buying $100 million in shares. Tether now holds 37.8% of the firm, which gains revenue from gold mining operations.
Tether has not responded to media requests for additional comments at the time of publication.
Related content
Comments
