Tether Expands Its Reach Beyond Cryptocurrency, Eyeing Gold Investments
Tether, the company behind the USDT (USDT) StableCoin, is exploring opportunities to invest in the gold sector, including mining, refining, and license fees. This move marks a significant shift for the company, which has traditionally focused on its cryptocurrency operations. According to a recent report, Tether is seeking to expand its reach beyond its core business and into the traditional assets market.
Tether already stores gold worth around $8 billion in a safe vault in Zurich. The company launched Tether Gold (Xaut) in January 2020, a token backed 1-1 by physical gold. Xaut has accumulated a market capitalization of over $876 million, supported by 7.7 tons of bullion and over 259,000 tokens in circulation. In August, Tether issued around 129,000 new Xaut tokens, resulting in a market value increase of $437 million on a single day, bringing the overall market capitalization to over $1.3 billion.
Tether’s Diversification Strategy
Tether’s managing director, Paolo Ardoino, has described gold as a natural counterpart to Bitcoin, and part of the company’s strategy to link crypto with real assets. An investment in mining and royalty companies would deepen this connection and provide new financing flows to an industry often faced with high financing costs. Tether’s profits from its StableCoin operations are being used to expand its reach into traditional assets, including gold, agricultural products, and license fees.
Tether has made several strategic investments in recent months, including a $600 million deal to acquire a 70% stake in Adecoagro, an agricultural and energy group in Latin America. The company has also invested in Zengo Wallet, a self-custody app, and acquired a minority stake in Bit2Me, a crypto exchange based in Chile. Tether’s investments now extend to over 120 companies, with a total value exceeding $800 million.
Tether’s Expansion into New Markets
Tether’s entry into the gold market could signal fresh demand and support ongoing efforts to digitize the responsibility of bullion. The company’s talks with gold miners and royalty companies emphasize its strategy to use profits from its StableCoin operations to expand its reach into traditional assets. Tether’s investments in gold, agricultural products, and license fees demonstrate its commitment to bridging the gap between crypto and real assets.
For more information on Tether’s investment plans and expansion into new markets, visit https://crypto.news/stablecoin-group-tether-holds-talks-to-invest-in-gold-miners/
