The world's largest stablecoin issuer Tether is redirecting its massive profits towards the physical gold industry. From holding billions of dollars worth of gold bars to negotiating investments in gold mining and refining companies, it has been mocked by outsiders for exchanging Bitcoin "digital gold" for "real gold."
Stablecoin giant crosses over: Tether intends to invest in the gold supply chain
Tether dominates the market with its USDT stablecoin, boasting a circulating market value of up to 170 billion USD and achieving a remarkable net profit of 4.9 billion USD in the second quarter of this year. Now, the Financial Times reports that this stablecoin giant is doubling down on gold, seeking to invest in the complete supply chain from extraction, refining, trading to gold royalty companies.
CEO Paolo Ardoino has always been a gold enthusiast, claiming it is safer than any sovereign currency and can complement Bitcoin.
I know that people think of Bitcoin as "digital gold," but I prefer to think of it from the perspective of Bitcoin; gold can be said to be "natural Bitcoin."
The combination of Bitcoin and gold as a "digital and physical" asset portfolio may be the hedging strategy that Tether is preparing for future financial uncertainties.
Traditional gold mining: Never seen such a strange company.
For conservative gold mining, Tether's involvement has also sparked discussions. One mining executive stated, "They like gold, but I don't think they have a clear strategy." Another commodities industry insider described Tether as the "strangest company" he has encountered.
These doubts reflect the skepticism of the gold industry regarding whether the "non-traditional newcomers" in the crypto space can succeed. After all, gold has long been viewed as a safe-haven asset, and whether Tether possesses the patience and expertise to manage mining investments remains to be seen.
Tether's Gold Strategy: From Vault to Premium Enterprise Investment
However, Tether has been accumulating gold for years. Data released in July shows that it holds approximately 8.7 billion USD worth of gold in Swiss vaults as collateral for its stablecoin.
Ardoino stated: "As concerns about the worsening U.S. debt issue continue to rise, it will further increase the demand for gold as a safe haven."
(Tether built its own vault in Switzerland, holding 80 tons of gold reserves, and launched the monitoring platform Scam-alert to combat crypto fraud)
At the same time, Tether's investment division acquired a stake in the Toronto-listed gold royalty company Elemental Altus for $105 million in July, and recently increased it by an additional $100 million.
Tether's business plan head Juan Sartori stated at the time that these investments were part of the group's strategy to increase "gold exposure."
In addition, Tether has launched the XAUt gold token, backed by physical gold, with a current scale of approximately 880 million USD.
From gold investment to trade finance: Tether's cross-domain layout
Insiders reveal that Tether also holds a significant position in the commodity trade financing sector, with its trading department handling over billions of dollars in short-term financing related to raw material goods. Ardoino also mentioned in an interview in June that they are investing profits into areas such as energy production, AI computing power, and brain-machine interfaces.
Tether's various actions also reflect its business strategy: not just a simple "stablecoin issuer," but a practical enterprise that provides financial alternatives for the 3 billion people worldwide.
This article discusses Tether's negotiations to invest in gold mining companies: using "digital gold" to buy "physical gold"? Originally appeared in Chain News ABMedia.
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Tether discusses investing in gold mining companies: using "digital gold" to buy "physical gold"?
The world's largest stablecoin issuer Tether is redirecting its massive profits towards the physical gold industry. From holding billions of dollars worth of gold bars to negotiating investments in gold mining and refining companies, it has been mocked by outsiders for exchanging Bitcoin "digital gold" for "real gold."
Stablecoin giant crosses over: Tether intends to invest in the gold supply chain
Tether dominates the market with its USDT stablecoin, boasting a circulating market value of up to 170 billion USD and achieving a remarkable net profit of 4.9 billion USD in the second quarter of this year. Now, the Financial Times reports that this stablecoin giant is doubling down on gold, seeking to invest in the complete supply chain from extraction, refining, trading to gold royalty companies.
CEO Paolo Ardoino has always been a gold enthusiast, claiming it is safer than any sovereign currency and can complement Bitcoin.
I know that people think of Bitcoin as "digital gold," but I prefer to think of it from the perspective of Bitcoin; gold can be said to be "natural Bitcoin."
The combination of Bitcoin and gold as a "digital and physical" asset portfolio may be the hedging strategy that Tether is preparing for future financial uncertainties.
Traditional gold mining: Never seen such a strange company.
For conservative gold mining, Tether's involvement has also sparked discussions. One mining executive stated, "They like gold, but I don't think they have a clear strategy." Another commodities industry insider described Tether as the "strangest company" he has encountered.
These doubts reflect the skepticism of the gold industry regarding whether the "non-traditional newcomers" in the crypto space can succeed. After all, gold has long been viewed as a safe-haven asset, and whether Tether possesses the patience and expertise to manage mining investments remains to be seen.
Tether's Gold Strategy: From Vault to Premium Enterprise Investment
However, Tether has been accumulating gold for years. Data released in July shows that it holds approximately 8.7 billion USD worth of gold in Swiss vaults as collateral for its stablecoin.
Ardoino stated: "As concerns about the worsening U.S. debt issue continue to rise, it will further increase the demand for gold as a safe haven."
(Tether built its own vault in Switzerland, holding 80 tons of gold reserves, and launched the monitoring platform Scam-alert to combat crypto fraud)
At the same time, Tether's investment division acquired a stake in the Toronto-listed gold royalty company Elemental Altus for $105 million in July, and recently increased it by an additional $100 million.
Tether's business plan head Juan Sartori stated at the time that these investments were part of the group's strategy to increase "gold exposure."
In addition, Tether has launched the XAUt gold token, backed by physical gold, with a current scale of approximately 880 million USD.
From gold investment to trade finance: Tether's cross-domain layout
Insiders reveal that Tether also holds a significant position in the commodity trade financing sector, with its trading department handling over billions of dollars in short-term financing related to raw material goods. Ardoino also mentioned in an interview in June that they are investing profits into areas such as energy production, AI computing power, and brain-machine interfaces.
Tether's various actions also reflect its business strategy: not just a simple "stablecoin issuer," but a practical enterprise that provides financial alternatives for the 3 billion people worldwide.
This article discusses Tether's negotiations to invest in gold mining companies: using "digital gold" to buy "physical gold"? Originally appeared in Chain News ABMedia.