Tether, the publisher of the world’s largest Stablecoin USDT, is reportedly discussing deepening investments in gold mining companies as part of a broader expansion strategy.
According to a September 5 Financial Times report, the company is holding discussions with mining and investment groups to explore opportunities across the gold supply chain.
If the plan is realized, Tethers can take part in every stage of the process, from mining and refinement to trading and loyalty.
Tether has not responded to requests for comment at the time of reporting.
Meanwhile, the debate coincides with the new strength of the gold market.
Investors seeking safe inventory assets in the current global economic environment have pushed the price of precious metals to a new all-time high of $3,550 per ounce.
This price rally created a favorable background for Tether’s interest in the sector.
Tether gold embrace
Tether’s reported interest in gold mining is built on the previous transition to the sector.
The company spent nearly $90 million in June to secure control of Canadian royalty firm Elemental Altus Royalties Corp. The agreement includes purchasing 78.4 million shares of common stock from La Mancha Investments, raising its ownership of 31.9% and its options to 50%.
Crypto Investor Blueprint: 5-day course on bag holdings, insider frontrunning, and lost alpha
On September 4th, Stablecoin Issuer agreed to expand its gold-focused company’s interests by adding $100 million worth of company shares.
Beyond equity transactions, Tether is already issuing Tether Gold (Xaut), a digital token that has been gold-backed. The company revealed in July that Xaut was supported by more than 7.66 tons of gold stored in Switzerland.
In particular, Tether also reports that its gold holdings represent more than 5% of the USDT Stubcoin reserve.
Tether’s expansion to gold presents a strategy to link tangible assets with blockchain finance at a time when both safe hull demand and stable adoption is on the rise
USDT domination continues
While expanding to gold, Tether’s core business remains unparalleled in the crypto industry.
Token Terminal data shows USDT transfers reached a record $1.32 trillion in August, driven by a unique address of 14 million.
With circulating supply exceeding $170 billion, USDT accounts for 59.2% of the $288 billion Stablecoin market.
Its scale makes it the sector’s most important token and solidifies its role as the backbone of global crypto liquidity.
It is mentioned in this article
