Tether Expands Beyond Crypto With Gold Industry Investments
Tether, the company behind the worlds largest stablecoin USDT, is turning its attention to the gold sector. According to recent disclosures, the firm has entered discussions with mining groups and investment companies to explore new opportunities in the precious metals industry. These talks reportedly cover the mining and refining process, as well as trading and royalty businesses.
Strategic Shift and Executive Statements
Paolo Ardoino, Tether's CEO, has publicly expressed support for considering gold a complement to Bitcoin. He recently stated that while many refer to Bitcoin as digital gold, he views gold as a foundational asset. These statements come amid Tether's broader strategy to diversify its holdings and investment portfolio, and reflect ongoing efforts to reduce dependency on a single asset class.
Financial Backdrop and Reserve Structure
In the first half of 2025, Tether reported $5.7 billion in profits. The USDT stablecoin managed by the company currently has a market capitalization of $168 billion, as of June. Of its $162 billion in reserves, approximately $130 billionabout 80%is held in cash equivalents, mainly through direct and indirect exposure to U.S. Treasury bills.
Previous Forays Into Gold
Tether has taken prior steps into commodity-backed finance. The company maintains a stablecoin backed by physical gold, although this product remains much smaller than USDT, with a market cap of $880 million. In June, Tether acquired a minority stake valued at $105 million in Elemental Altus, a Canadian gold royalty company. Following a recent $45 million capital injection, Tether now owns more than 37.8% of the company.
Expansion Into Commodities and Future Plans
Tether's activities in commodities extend beyond gold. In October 2024, the company hired specialized consultants in this sector. The following month, Tether financed a $45 million deal related to international oil trading. The company's expanding commodity investments appear to be part of an ongoing strategy to diversify risk and seek additional sources of income outside the cryptocurrency ecosystem.
- Tether is exploring investments spanning gold mining, refining, trading, and royalties.
- Recent acquisitions and partnerships signal a broader diversification strategy.
- The majority of Tethers reserves remain in cash and U.S. Treasury exposure.
As Tether further establishes its footprint in the commodities market, industry watchers are monitoring whether other major crypto companies will follow suit in broadening their exposure beyond digital assets.
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