Tether, the company behind the world’s largest stablecoin, is weighing investments in the gold sector as part of efforts to broaden its portfolio beyond digital assets. Discussions have reportedly taken place with mining firms, royalty companies, and commodity investors covering different stages of the gold value chain from extraction to refining and trading.
Expanding Beyond Treasuries
Tether has become one of the most profitable players in the crypto industry through its USDT token, which is pegged to the U.S. dollar and backed by short-term government securities. With a market capitalisation above $160 billion and first-half profits of $5.7 billion this year, the company is now seeking avenues outside its traditional reliance on U.S. Treasuries.
Gold, often viewed as a stable store of value, has increasingly caught Tether’s attention. The company already holds about $8.7 billion worth of bullion in Swiss vaults to back part of its stablecoin reserves. It also issues XAUt, a token tied to physical gold, though it remains a niche product compared with USDT.
Strategic Investments Underway
Earlier in 2025, Tether allocated $105 million for a minority stake in Toronto-listed royalty firm Elemental Altus. The position was expanded by a further $100 million this summer following Elemental’s announced merger with competitor EMX, signalling Tether’s intent to increase its gold-linked exposure.
Industry sources suggest the company has also engaged with several royalty-focused businesses and investment vehicles, including Terranova Resources, though not all talks have resulted in deals. At the same time, Tether has built a presence in commodity trade finance, reportedly deploying billions in short-term loans for raw material cargoes.
Market Reaction
While some in the commodities sector welcome new capital inflows, others remain cautious about whether Tether has a long-term vision for gold. The crypto company’s unconventional profile stands in contrast to the typically conservative gold industry, prompting questions about how its investments will evolve.
A Bridge Between Assets
The move reflects a wider trend of linking traditional commodities with blockchain-based finance. Industry observers note that gold-backed tokens and tokenised trade finance could grow as investors look for assets that combine the stability of physical resources with the efficiency of digital markets.
For Tether, deepening ties to gold could provide a hedge against volatility and reinforce its diversification strategy at a time when digital assets are increasingly intersecting with the broader commodities market.
