Tether Pursues Broader Investment in Gold Industry
Tether, the issuer of the USDt stablecoin, is actively engaging with mining and investment entities to deploy capital across multiple segments of the gold supply chain. This strategic initiative aims to diversify Tether’s portfolio beyond its significant holdings of physical gold and cash equivalents, according to a report by the Financial Times.
Expanding Beyond Physical Gold Holdings
Currently, Tether holds approximately $8.7 billion worth of physical gold in a Zurich vault, which underpins its gold-backed stablecoin, Tether Gold (XAUT), with a market capitalization near $1.4 billion. The company is exploring investments in gold mining, refining, trading, and royalty companies to deepen its involvement in the precious metals market.
Portfolio Composition and Financial Performance
As of mid-2025, Tether’s total reserves stand at $162 billion, with about 80% allocated to cash, cash equivalents, and short-term deposits, including $127 billion in US Treasury securities. A June audit revealed a net profit of $5.7 billion for the first half of 2025, highlighting the firm’s strong financial position amid market volatility.
Recent Investments and Market Context
In line with its commodity market ventures, Tether recently increased its stake in Canadian gold royalty company Elemental by $100 million, raising its ownership to nearly 38%. Elemental specializes in acquiring revenue streams from gold mining operations, providing Tether with exposure to royalty income.
The price of gold has climbed approximately 36.5% year-to-date, reaching around $3,600 per ounce, according to APMEX data, underscoring the potential benefits of Tether’s expanded gold investments.
Previous Commodity Market Engagements
Tether has previously explored commodity-related strategies, including lending profits to commodity traders in late 2024 and entering the oil market through a $45 million crude oil financing deal.
Efforts to obtain comment from Tether were unsuccessful at the time of publication.
FinOracleAI — Market View
Tether’s move to invest across the gold supply chain is a strategic diversification aimed at reducing reliance on cash and Treasury securities. By expanding into mining, refining, and royalties, Tether could enhance yield potential and hedge against inflationary pressures impacting fiat reserves. However, execution risks remain, including commodity price volatility and operational challenges in mining investments.
Investors should monitor Tether’s actual capital deployment and any regulatory scrutiny given the stablecoin context. Gold price trends and commodity market dynamics will also influence the success of this strategy.
Impact: positive
