Stablecoin issuer Tether, known for its USDt (USDT), is venturing into the gold market by engaging in discussions with mining and investment groups to strategically deploy capital across various segments of the gold supply chain. This initiative aims to further diversify Tether’s existing portfolio and mitigate risk, as reported by the Financial Times.
The company is reportedly looking to invest across multiple areas within the gold sector, including gold mining, refining, trading, and royalty companies. Currently, Tether has amassed $8.7 billion in physical gold, securely stored in a vault located in Zurich, Switzerland. This reserve underpins Tether Gold (XAUT), the firm’s gold-backed stablecoin, which has a market capitalization of approximately $1.4 billion.
Tether’s exploration into the gold sector represents a significant shift in its risk exposure. While a substantial portion of Tether’s reserves—$162 billion—is held in cash and cash equivalents, with about 80% allocated to these safer assets, the company also has $127 billion tied up in US Treasury securities. Notably, Tether reported a net profit of $5.7 billion for the first half of 2025, based on an audit conducted in June.
As of the latest data, the price of gold has surged to approximately $3,600 per ounce, marking a 36.5% increase in 2025 alone, according to APMEX. This uptick in gold prices could serve as a catalyst for Tether’s increased investment in the commodities market.
Historically, Tether has shown interest in commodities, considering lending some of its profits to traders in October 2024 and subsequently entering the oil trading market in November through a $45 million financed crude oil transaction. Recently, reports emerged that Tether has fortified its position in the Canadian gold royalty company Elemental, executing a $100 million share purchase. This move expands Tether’s ownership to 37.8% of Elemental, which works to acquire revenue streams from gold mining operations.
As Tether continues to broaden its investment horizons, its foray into the gold sector may reshape its strategy and impact the stablecoin market at large. The stablecoin issuer has yet to respond to inquiries for further comment on its latest strategic moves.
