Tether, the powerhouse behind the world’s largest stablecoin, USDT, is making headlines with its potential foray into the gold mining industry. According to a report by the Financial Times, the firm has been in talks with various mining groups to explore investment opportunities in the gold supply chain, ranging from refining to trading and royalties.
In a notable mention at the Bitcoin 2025 conference, Tether CEO Paolo Ardoino referred to gold as “bitcoin in nature,” highlighting the precious metal’s growing appeal to cryptocurrency enthusiasts. This sentiment is echoed by industry experts, with one describing Tether as “the weirdest company I have ever dealt with,” illustrating the unconventional nature of its business strategies.
Financial statements reveal that Tether already possesses $8.7 billion worth of gold bars stored in a vault in Zurich. The company has also taken significant steps within the gold market, recently acquiring a minority stake in Elemental Altus, a publicly traded precious-metals investment company, for $89.2 million in June. Additionally, Tether offers Tether Gold (XAUT), a stablecoin that mirrors the value of physical gold.
This week, gold prices skyrocketed to an all-time high, surpassing $3,550 per ounce, nearly doubling in value over the past two years. As geopolitical tensions continue to spur interest in gold as a safe haven investment, Tether’s move into gold mining could resonate strongly with crypto investors who seek stability and value in volatile markets.
“Tether is exploring investment in gold mining, signaling a strategic position as the gold market flourishes.”
Tether’s Investment in Gold Mining
Key points surrounding Tether’s potential investment in gold mining and its implications:
- Investment in Gold Supply Chain:
- Tether is considering investments in gold mining, refining, trading, and royalties.
- CEO’s Perspective:
- CEO Paolo Ardoino labeled gold as “bitcoin in nature,” highlighting its value perception.
- Financial Holdings:
- Tether holds $8.7 billion in gold bars stored in a Zurich vault.
- Paid $89.2 million for a minority stake in Elemental Altus, a precious-metals investment company.
- Tether Gold (XAUT):
- Offers a stablecoin backed by physical gold, with each token representing one troy ounce.
- Gold Market Trends:
- Gold reached an all-time high of over $3,550 per ounce, indicating strong market demand.
- Gold’s price has nearly doubled over the past two years.
- Investor Sentiment:
- Gold is viewed as a safe haven investment, especially amid geopolitical tensions, appealing to crypto investors.
Tether’s diversification into gold may impact investor confidence in the stablecoin and the broader cryptocurrency market.
Tether’s Bold Move into Gold Mining: Competitive Landscape Analysis
Tether’s recent interest in investing in gold mining marks a significant pivot for the issuer of the world’s leading stablecoin, USDT. This strategic direction could set Tether apart from its competitors in the cryptocurrency space. Currently, many crypto firms are merely trading or investing in digital assets, but Tether’s foray into the gold supply chain may signal a deeper commitment to asset diversification. The move taps into the growing trend of crypto enthusiasts looking for stable, physical assets like gold as a hedge against market volatility.
In the world of digital assets, companies like Paxos and Circle offer alternatives to Tether’s model by issuing their stablecoins backed by fiat currencies. While Paxos has developed a strong reputation with its PAX Gold (PAXG), Tether’s established infrastructure with USDT could offer it a competitive edge. Shifting focus to gold mining can enhance Tether’s backing stability, particularly as gold prices soar amid economic uncertainty, potentially attracting a new demographic of investors who prioritize asset security.
However, there are challenges. Tether has faced scrutiny and skepticism regarding its practices and transparency in the past. As it enters the gold market, Tether must overcome the perception of being a “weird” company, as pointed out by industry executives. This could alienate traditional investors familiar with verified gold investments and create hurdles in building partnerships within the gold mining sector.
For investors, Tether’s gold venture could either provide an exciting opportunity to engage with a crypto product tied to a tangible asset or lead to concerns regarding the lasting integrity of Tether’s business model. Especially in volatile markets, crypto investors seeking security may find themselves inclined toward gold-backed investments. Conversely, if Tether’s operations do not translate into reliable returns or transparency, it may exacerbate distrust, alienating potential users who prioritize security in their investments.
