Tether, the stablecoin giant with USDT, wants to invest in gold mining. After building an empire of $168 billion in USDT in circulation and raking in $5.7 billion in profits in the first half of the year alone, the company led by Paolo Ardoino is now looking to turn some of its crypto gains into real metal.
For several years now, Tether has already accumulated billions: $8.7bn in bullion lies in a vault in Zurich, serving as partial collateral for its stablecoin. Ardoino is clear about this: “Gold is nature’s bitcoin.” It’s a striking statement that is part of a broader vision: combining the age-old appeal of the metal with the dynamism of crypto finance.
But this time, the company doesn’t want to limit itself to storage. According to the Financial Times, Tether has entered into discussions with various players in the sector to invest in the entire gold chain: mining, refining, trading, and royalties.
First steps: royalties
In June, Tether Investments put $105m on the table to acquire a minority stake in Elemental Altus, a Canadian gold royalty company. This initial investment was followed by another $100m when the company merged with its rival EMX.
The idea? To focus on a model where the royalty company finances mines in exchange for a percentage of future revenues, a less risky bet than direct mining. “It’s a way to increase our exposure to gold,” explains Juan Sartori, head of strategic initiatives at Tether.
Other discussions have taken place, notably with Terranova Resources, an investment vehicle based in the British Virgin Islands. No agreement has been finalized, but there is a clear indication that Tether is actively exploring its options.
XAUT: the natural extension
Tether’s appetite for gold is nothing new. The company already offers a stablecoin backed by the yellow metal: Tether Gold (XAUT). Each token corresponds to one ounce of gold stored in Switzerland. With a market capitalization of $880 million, the project remains marginal compared to USDT, but it demonstrates the ambition to make gold programmable, divisible, and therefore exchangeable like any other digital asset.
The problem is that regulators do not look favorably on gold in stablecoin reserves. In both the European Union and the United States, current legislation requires reserve assets to be liquid and quasi-monetary (cash, short-term sovereign bonds). In other words, there is no room for gold bars.
If Tether wanted to obtain a regulated license for USDT in these jurisdictions, it would have to sell its gold reserves. And the company knows this. Its strategy therefore seems to be based on a hybrid approach, combining tactical independence with expansion outside the traditional institutional framework.
A double-edged strategy
Gold, a tangible and age-old asset, is as reassuring as it is questionable in the portfolio of a company like Tether. On the one hand, it diversifies revenues, offers an alternative to Treasury bills, and lends credibility to Ardoino’s vision of a “crypto-gold standard.” On the other hand, it plunges Tether into an industrial world where profitability is measured in decades, far from the frenetic pace of the cryptosphere.
Tether remains a controversial company. It has often been accused of being vague about its reserves, and its explosive growth has attracted the attention of regulators around the world. Enabling billions of dollars to change hands outside the banking system is a technological feat, but also a challenge for global financial stability.
